Couche-Tard Shares Climb After Bid to Buy Total Energies European Retail Assets

By Robb M. Stewart

Alimentation Couche-Tard Inc.'s shares rose Thursday, outperforming the broader market after the convenience-store operator moved to expand in Europe with a $3.28 billion offer for Total Energies SE's retail assets.

In morning trading, the shares were 0.8% higher at C$168.57, while Toronto's broad S&P TSX index was down 0.7%.

The Quebec-based company said its offer would see it buy all of Total Energies's retail assets in Germany and the Netherlands and take a controlling 60% interest in assets in Belgium and Luxembourg. The Total Energies assets include 2,193 sites, most of which are in Germany.

The deal would add to other recent acquisitions as Couche-Tard has moved to expand its footprint.

In mid-January, Couche-Tard agreed to buy 45 company-owned and operated retail and fuel sites in Arkansas, and in February it bought all the membership interests of True Blue Cash Wash LLC, which operates sites in the U.S. Midwest and Southwest.

Late Wednesday, Couche-Tard reported a fall in fiscal third-quarter earnings to $737.4 million in the 16 weeks to Jan. 29 from $746.4 million last year, in part due to a currency-related hit, while per-share earnings rose to 73 cents from 70 cents after the company repurchased shares during the period.

On an adjusted basis, earnings rose to 74 cents a share, below the 79 cents expected by analysts polled by FactSet.

Total revenue increased to $20.06 billion from $18.58 billion a year earlier as a higher average price for fuels and a boost from acquisitions helped counter lower fuel demand. The mean forecast of analysts was for sales of $20.3 billion.

Merchandise and service revenue for the quarter rose 3.5% to $4.96 billion as growth in the U.S. countered weakness in Canada, Europe and other regions.

Write to Robb M. Stewart at [e-mail]

(END) Dow Jones Newswires

March 16, 2023 11:16 ET (15:16 GMT)

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