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Circle K owner Couche-Tard explores acquisition of Carrefour

Merger would create global food and convenience retail giant of over 26,000 stores

Russell Redman

January 13, 2021

2 Min Read
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Alimentation Couche-Tard's North American retail network spans 9,261 convenience stores in the U.S. and Canada under the Circle K, Couche-Tard and Ingo banners.Alimentation Couche-Tard (Circle K)

Convenience store retailer Alimentation Couche-Tard, operator of Circle K stores, has begun talks to acquire global food retailer Carrefour Group in a deal estimated at more than $20 billion (U.S.).

Laval, Quebec-based Couche-Tard today confirmed that it has submitted a nonbinding offer to Carrefour for a “friendly combination” at a price of €20.00 ($24.31 U.S. and $30.86 Canadian) per Carrefour share. The announcement came a day after Couche-Tard said it had initiated “exploratory discussions” with Carrefour regarding a “potential friendly transaction.”

“The terms of the transaction are under discussion and remain subject to diligence, but the consideration is currently expected to be in cash in large majority,” Couche-Tard said in a statement on Wednesday. “There can be no certainty at this stage that these discussions will result in any agreement or transaction. In considering strategic transactions, Couche-Tard will remain focused on creating stakeholder value.”

Massy, France-based Carrefour confirmed the talks with Couche-Tard but hasn’t publicly commented further.

“Carrefour has been approached, in a friendly manner, by the Alimentation Couche-Tard group, with a combination project. Discussions are very preliminary,” Carrefour said in a statement.

Related:Metro sells stake in Couche-Tard to fund Jean Coutu purchase

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Carrefour's global retail network of about 12,300 stores includes hypermarkets, supermarkets, convenience stores and cash-and-carry grocery stores.

As of the close of its fiscal 2021 second quarter on Oct. 11, Couche-Tard’s retail network spanned over 14,200 stores in 26 countries and territories. In North America, that number includes 9,261 convenience stores (8,085 stores with road transportation fuel dispensing) in 47 U.S. states and 10 Canadian provinces under the Circle K, Couche-Tard and Ingo banners. The European network encompasses 2,722 Circle K and Ingo stores in Norway, Sweden, Denmark, Estonia, Latvia, Lithuania, Ireland and Poland, while the international operation includes licensed Circle K stores in 16 other countries and territories. Couch-Tard totaled revenue of $54.13 billion Canadian ($42.61 billion U.S.) for its 2020 fiscal year.

In 2017, Canadian food and drug retailer Metro Inc. sold its majority stake in Couche-Tard to three financial institutions for $1.55 billion (Canadian) in order to fund its $4.5 billion (Canadian) acquisition of Montreal-based drug chain Jean Coutu Group, which closed in May 2018.

Known for its hypermarkets, Carrefour has a multi-format retail network of about 12,300 stores in 30-plus countries, primarily in France and Europe. Its store base includes 1,207 hypermarkets, 3,412 supermarkets, 7,193 convenience stores and 413 cash-and-carry grocery stores. The company had gross sales of €80.7 billion ($98.1 billion U.S.) in its most recently reported fiscal year.

Related:7-Eleven buying 3,900 Speedway stores in $21 billion deal

In the 2020 Supermarket News Top 75 Retailers & Wholesalers list, covering North America, Couche-Tard came in at No. 23 with consumables sales of $13.3 billion (U.S.) for the 2019-20 period. The company finished at No. 4 in store count, with 9,815 locations.

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Couche-Tard

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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