Canada’s Alimentation Couche-Tard Inc., which owns the Circle K convenience store brand, could merge with the UK’s EG Group to create a global petrol station, food & beverage, and retail brand giant
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A Circle K store in Colorado Springs, USA | Photo credit: CC BY-SA 4.0
Canada’s Alimentation Couche-Tard Inc. is reportedly in talks to merge with the UK’s EG Group.
The Wall Street Journal reported that Couche-Tard was exchanging proposals with EG Group as part of a $16bn deal to fulfil its global growth ambitions.
If the merger is successful, the new entity would operate around 20,000 retail, food & beverage and petrol station sites in 30 countries, making it one of the largest food & beverage operators in the world.
Alimentation Couche-Tard Inc. operates 14,200 convenience, quick service, and petrol station outlets in North America, Europe and Asia through its Circle K, Couche-Tard and Ingo quick-service businesses.
Circle K is one of the largest convenience brands with a coffee offer North America, with more 6,300 stores across the US.
Meanwhile, EG Group operates a portfolio of more than 6,000 petrol station sites around the world, including 700 in the UK and Ireland with licensed branches of prominent brands including Starbucks, KFC, Cinnabon and Greggs.
In 2021 the EG Group acquired UK food-to-go and coffee chain, Leon, in
a $100m deal, and later acquired bakery-café chain
Cooplands for an undisclosed sum. Reporting its full-year results for 2021, EG Group praised the performance of its foodservice brands as major contributors to its $1.82bn revenues.