Couche-Tard Gets OK to Acquire Imperial Oil Sites
LAVAL, Quebec — The Canadian Competition Bureau approved Alimentation Couche-Tard Inc.'s acquisition of certain assets from Imperial Oil. The transaction is expected to be complete in October and will be financed from Couche-Tard's available cash and existing credit facilities.
Following the Bureau's review, Couche-Tard agreed to divest two retail sites, one in Ontario and one in Quebec. The resolution will be registered as a consent agreement with the Competition Tribunal, and until the divestitures are completed, the sites will be held and operated separately from Couche-Tard.
"We are very excited to announce this new addition to the Couche-Tard family and to welcome the great people at Imperial to our team," stated Couche-Tard President and CEO Brian Hannasch. "The sites we are acquiring are a great strategic fit for our business and combine some of the strongest brands in the country. We view this transaction as a transformative acquisition in Canada."
Imperial Oil announced the deal, which is one of five agreements it made with various companies to sell its entire retail division for a combined $2.8 billion in Canadian dollars, in March 2016, as CSNews Online previously reported.
Couche-Tard will acquire 279 Esso-branded fuel and convenience sites, 229 of which are located in Ontario in the greater Toronto area. The remaining 50 sites are located in Quebec in the greater Montreal area or on the south shore of Montreal. Of the total acquired sites, 238 are owned and 41 are leased.
The agreement also includes 13 land banks, two dealer sites and a long-term supply agreement for Esso fuel. Subsequent to the transaction, Couche-Tard's c-store network in Canada will include 1,719 sites.
"We are pleased to have closed this transaction as it represents an outstanding opportunity for growth," said Jean Bernier, Couche-Tard's group president global fuels & Northeast operations. "The addition of Imperial's sites allows us to expand our network and reach more fuel customers than ever before. Together with the team at Imperial, we looking forward to creating an even greater offer and experience for our customers."