Canada's Couche-Tard in lead to acquire CST Brands -sources (updated)

Crossamerica Partners LP

16/08/2016 21:44

(Adds Couche-Tard statement) 
    By Lauren Hirsch and John Tilak 
    NEW YORK, Aug 16 (Reuters) - Canadian convenience store 
operator Alimentation Couche-Tard Inc  ATDb.TO  is in the lead 
to acquire CST Brands Inc  CST.N , a U.S.-based convenience 
store retailer, according to two sources familiar with the 
matter.  
    San Antonio, Texas-based CST owns and operates convenience 
stores and gas stations in Canada and the United States, and it 
controls the general partner of gas station company CrossAmerica 
Partners LP  CAPL.N . 
    CST declined to comment.  
    In a statement on Tuesday, Couche-Tard said it is in 
discussions "with third parties regarding possible business 
transactions."  
    "No formal agreements have been reached," it added.  
    Couche-Tard shares closed up 3.1 percent, while CST's stock 
ended the day 6.3 percent higher. 
    The move highlights the level of consolidation in the 
convenience store sector and reinforces Couche-Tard as one of 
the most acquisitive players in the industry.     
    The news comes about two months after Reuters reported that 
Couche-Tard and Japan's Seven & i Holdings Co Ltd  3382.T  had 
submitted offers to acquire CST.  urn:newsml:reuters.com:*:nL1N18U1SF 
    The Wall Street Journal first reported that Couche-Tard was 
close to buying CST.  
 
 (Reporting by Lauren Hirsch; Writing by John Tilak; Editing by 
Lisa Von Ahn and Tom Brown) 
 ((john.tilak@thomsonreuters.com; 1-416-687-7918; Reuters 
Messaging: john.tilak.reuters.com@reuters.net)) 
 
Keywords: CST BRANDS M&A/ALIMENTATION C T