Couche-Tard to Acquire Europe Assets From TotalEnergies in EUR3.1 Billion Deal

By Justina Lee

Canadian convenience-store operator Alimentation Couche-Tard Inc. has made an offer to acquire retail assets in Europe from energy company TotalEnergies SE for 3.1 billion euros ($3.28 billion).

Under the proposed deal, Couche-Tard will take over TotalEnergies' retail networks in Germany and the Netherlands, comprising more than 1,500 service stations, the companies said in press releases on Thursday.

TotalEnergies and Couche-Tard would also form a joint venture to own and operate over 600 service stations in Belgium and Luxembourg. The JV would be 60% owned by the Canadian company and 40% owned by its French counterpart.

TotalEnergies said it expects the partnership to maximize the stations' non-fuel sales in the two countries, where it holds market-leading positions. In Germany and the Netherlands, it plans to focus instead on developing new mobilities like electric and hydrogen, in line with its net-zero ambitions.

"The service stations in the four countries will remain under the TotalEnergies brand as long as the fuel is supplied by the company, for at least five years," TotalEnergies said.

Couche-Tard plans to finance the acquisition via a mix of funding, including available cash, existing credit facilities and a new term loan.

It said the move is in line with its aim of expanding its footprint in Europe, with Chief Executive Officer Brian Hannasch describing it as "a strong geographical fit with our existing European network, which will allow us to grow together in some of Europe's strongest economies."

Couche-Tard said it expects to close the deal before year's end but added that "there is no certainty that the firm offer will be accepted and that the transaction will be completed."

Write to Justina Lee at [e-mail]

(END) Dow Jones Newswires

March 16, 2023 05:03 ET (09:03 GMT)

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