Couche-Tard, The Owner Of Circle K, Is Seeking A Deal Worth Up To $15 Billion

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The top executive of Canada’s Alimentation Couche-Tard Inc. hopes that the disruption of the global economy will open the door for a sizable deal. The company has the financial capacity to complete a $10 billion to $15 billion acquisition.

“I’m hoping the uncertainty that’s out there today does create an environment where we can be acquisitive,” Chief Executive Officer Brian Hannasch said. “The balance sheet’s in good shape, it’s ready.”

A potential bidder for a portion of Suncor Energy Inc.’s Petro-Canada chain of gas stations has been identified as Couche-Tard, whose attempt to acquire grocery chain Carrefour SA was thwarted by the French government in 2021.

Analysts predict that if Suncor decides to sell it, it will cost more than C$10 billion ($7.6 billion), but due to antitrust concerns, Couche-Tard would not be able to acquire all 1,500 or more Petro Canada locations.

Hannasch believes that Couche-native Tard’s nation still has room for development.

Hannasch believes that Couche-native Tard’s nation still has room for development.

“There are certainly parts of Canada where we would love to grow, particularly the west where we’ve got a much smaller market share than what we would have in Ontario, the Atlantic provinces and Quebec,” he said in an interview. The company has just acquired more stations in Eastern Canada after agreeing to sell 47 sites to satisfy antitrust regulators.

On Wednesday, company executives from Laval, Quebec, told analysts that a combination of high inflation, slowing growth, and an uncertain economic outlook could lead to significant deal opportunities in the US and Europe.

According to National Bank Financial analyst Vishal Shreedhar, if Couche-Tard were to complete a sizable acquisition, “we think the shares would respond favorably given a strong track record of integrating deals.” Just 1.3 times the company’s earnings before interest, taxes, depreciation and amortization are owed in net debt.

Soyiga Samuel: Samuel is a public relations expert & an advocate for green earth & hands on the farm.