CST Brands Inc. agreed to be acquired by Canada’s Alimentation Couche Tard Inc. in a deal valued at $4.4 billion, including debt. Under terms of the deal, Alimentation will pay $48.53 a share in cash for each CST share outstanding, representing a 2.1% premium to Friday’s closing price. With 75.69 million shares outstanding, according to FactSet, the per-share bid for CST implies a market value of $3.67 billion. The motor fuel retailer had announced on March 3 it was exploring strategic alternatives, and The Wall Street Journal reported last week that a merger with Circle K parent Alimentation was near. Separately, Parkland Fuel Corp. agreed with Alimentation to buy CST’s Canadian business for $965 million. CST is CrossAmerica Partners LP’s general partner. CST’s stock had run up 21% year to date through Friday, while Alimentation shares had gained 2% and the S&P 500 had advanced 6.9%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News