Couche-Tard enters the Asian market
Couche-Tard enters the Asian market.
Share November 4, 2020 10:17 p.m. Updated at 11:48 p.m. Share Couche-Tard enters the Asian market The Canadian Press Couche-Tard makes its official entry into the Asian market, having already established its presence in North America and Europe.
Alimentation Couche-Tard inc. announced Wednesday that it has reached an agreement to acquire all of the issued and outstanding shares, on a fully diluted basis, of Convenience Retail Asia (BVI) Limited (“Circle K HK”) for HK $ 2.79 billion, or about 360 million US dollars.
Circle K HK, a subsidiary of Convenience Retail Asia Limited (“CRA”), operates a network of convenience stores (convenience stores) under the Circle K brand, with 340 corporate store locations in Hong Kong and 33 franchise locations in Macau.
Circle K HK currently has the second largest market share in Hong Kong, one of the most densely populated regions in the world. This transaction would also allow Couche-Tard to begin its expansion in Asia.
“I have closely followed the progress of Circle K Hong Kong for decades and deeply admire their leadership team as well as their retail expertise,” said Alain Bouchard, Founder and Executive Chairman of the Board of administration of Couche-Tard, in a press release released early Wednesday evening.
“I am confident that together we can reach millions of more customers in Hong Kong as well as across Asia to move us forward towards our goal of becoming the preferred destination for purchasing goods and fuel in Hong Kong. around the world, ”said Bouchard.
According to Victor Fung, President of CRA, the Board fully supports the sale of Circle K Hong Kong to Alimentation Couche-Tard Inc., “a long-standing partner and franchisor”.
“It's a winning transaction for both companies. Our shareholders will benefit from a good return on their investment and Couche-Tard will benefit from a first-rate team made up of dedicated and loyal members who have contributed to the success of Circle K Hong Kong, ”said Mr. Fung.
The transaction, which is expected to close by December 31, 2020, will be funded from available cash and will be subject to customary closing conditions, including CRA shareholder approval, as well as customary regulatory clearances and conditions. specified in the purchase agreement.