Competition Bureau of Canada gives $4.4B Couche-Tard deal green light
The Competition Bureau of Canada is giving the green light to Alimentation Couche-Tard (TSX.ATD.B) to purchase its American fuel and convenience store rival CST Brands Inc., provided the company sell some of CST's Canadian assets to Parkland.
In a statement Tuesday, the company based in Laval, Que., said the Competition Bureau gave them the clearance for the acquisition of CST Brands, and the transaction with Parkland Fuel Corp. (TSX: PKI).
Couche-Tard says the closings of both transactions are expected Wednesday.
The Competition Bureau says Couche-Tard's proposed deal would lessen competition in numerous markets in Ontario, Quebec, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador.
But the government agency says to address the concern, Couche-Tard agreed to sell 366 gas stations and gasoline supply contracts to Parkland and one gas station to Philippe Gosselin & Associes Limitee.
The Competition Bureau says Parkland has also agreed to sell nine gasoline supply contracts to MacEwen Petroleum Inc. or McDougall Energy Inc. in Ontario.