An employee checks inventory at a Couche-Tard convenience store in Quebec.Christinne Muschi/The Globe and Mail
Alimentation Couche-Tard has an agreement in principle with a U.S. competition watchdog to sell 25 convenience store and gas stations in the Midwest should it be successful in acquiring Casey's General Stores .
The Montreal-area operator said on Wednesday that it has reached an agreement with staff of the U.S. Federal Trade Commission, subject to final approval by FTC commissioners and assuming the Canadian company succeeds in its hostile takeover of the Iowa-based retailer.
The locations would be sold within an undisclosed time period following the closing of acquisition, which currently is valued at $2-billion (U.S.) but faces staunch opposition from the Casey's board, which has said the price is too low.
"The agreement with the FTC staff is another step towards making the combination of Couche-Tard and Casey's a reality," stated Couche-Tard president and CEO Alain Bouchard.
The agreement with competition agency may be moot since Casey's has rejected Couche-Tard's $38.50 per share offer and opted instead to negotiate with a mystery suitor that's offered $40.
Casey's operates 1,533 locations, mostly in small towns in the U.S. Midwest. Couche-Tard is North America's second-largest convenience store operator with 5,869 convenience stores in all Canadian provinces and 42 U.S. States.