The offer represents a 42 percent premium over CST’s closing price on March 3, before the company said it would explore strategic alternatives. The total enterprise value of the deal would be approximately $4.4 billion including net debt assumed. The transaction is now expected to close in early 2017, subject to the approval of CST’s stockholders and regulatory approvals in the US and Canada.
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The Wall Street Journal last week reported that a deal was imminent.
The CST transaction is expected to close in early calendar year 2017 and is subject to the approval of CST’s stockholders and regulatory approvals in the United States and Canada. CST spun off of Valero Energy in 2013. The deal marks Couche-Tard’s biggest takeover deal yet, surpassing its 2012 acquisition of Norwegian oil giant Statoil’s retail operations for US$2.8 billion. Last year, CST had $11.4 billion in revenue. CST is CrossAmerica Partners LP’s general partner.
CST shares (CST) fell 0.5% in pre-market trading Monday to $47.30.
Couche-Tard also agreed to sell some Canadian assets of CST for about $750 million, after the deal closes.
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“With Couche-Tard, we will build upon an extensive and attractive convenience and fuel network with enhanced scale and global reach to best position the combined company for future growth”, CST CEO Kim Lubel said in a statement. Together, Couche-Tard and CST will join on the journey to become the world’s preferred destination for convenience and fuel, according to CST.
