Couche-Tard to acquire Circle K HK from Convenience Retail Asia for $360m
Alimentation Couche-Tard, a Canadian convenience store chain, has agreed to acquire Convenience Retail Asia (BVI) (Circle K HK) for HK$2.79 billion (nearly $360 million) from Convenience Retail Asia, a Hong Kong retailer.
Circle K HK is the operator of a network of Circle K-licensed convenience stores. The network includes 340 company-operated sites across Hong Kong and 33 franchised sites across Macau.
Couche-Tard said that the deal is said to mark a major milestone as it gives a platform in Asia for launching its regional growth ambitions.
Presently, Circle K HK has the second largest market share in Hong Kong, said Couche-Tard.
Brian Hannasch – President and CEO of Couche-Tard said: “Circle K Hong Kong is one of the best convenience store operators in Asia and will be an excellent fit within our company. We are excited to partner further with their highly advanced team in terms of innovation, loyalty, private label, retail execution and ability to grow market share.
“Upon closing of this transaction, Couche–Tard will reach a milestone in its strategic ambition of entering the high growth Asia–Pacific market with a first-rate management and operations team, which has the credibility, experience and capabilities to support future expansion in the region.”
Circle K HK started operating in Hong Kong in 1985 and is managed by Convenience Retail Asia, which under a franchise deal with Couche-Tard, holds the exclusive right to the use of the Circle K brand in Hong Kong.
Richard Yeung – CEO of Convenience Retail Asia said: “We are very pleased to have reached this agreement with Couche-Tard. Having the brand owner directly involved in the business will create new opportunities for the brand and our staff.
“I am grateful to the management and employees of Circle K Hong Kong for their dedication over the past decades and am excited that they will be joining a multinational industry leader who shares our commitment to serving the local community.”
The deal, which is expected to be wrapped up by the year-end, is subject to customary closing conditions such as the approval by Convenience Retail Asia shareholders, regulatory clearances, and others.