Couche-Tard Shares Climb After Bid to Buy Total Energies European Retail Assets
March 16 2023 - 11:31AM
Dow Jones News
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 robb.stewart@wsj.com
(END) Dow Jones Newswires
March 16, 2023 11:16 ET (15:16 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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