08/22/2016 11:51 EDT | Updated 08/22/2016 11:59 EDT

Couche-Tard Buys Texas Convenience Store Chain CST Brands For US$4.4B

LAVAL, Que. — Alimentation Couche-Tard Inc. has announced a US$4.4-billion friendly deal to buy Texas-based CST Brands Inc.

In a related announcement, CST's Canadian business will be acquired by an Alberta-based company — Parkland Fuel Corp.

The announcements come after news of a possible deal between Couche-Tard and CST Brands became public last week.

Quebec-based Couche-Tard (TSX:ATB.B) says it will pay US$48.53 cash per share of CST Brands. The total value of the deal includes debt that Couche-Tard will assume.

couche tard union Couche-Tard owns the Mac's and Couche-Tard chains in Canada. (Photo: CP)

CST employs 14,000 people at more than 2,000 locations in the southwestern United States.

In a related deal, Parkland Fuel (TSX:PKI) will pay about US$750 million to acquire CST's retail business in Canada as well as a corporate presence in Montreal and a Canadian commercial and home heating business.

Couche-Tard already has an extensive network in the United States, which operates primarily under the Circle K brand of convenience stores and gas stations, as well as in Canada where it owns the Mac's and Couche-Tard chains.

The transactions are subject to various approvals. Further details will be discussed at two conference calls scheduled for Monday morning.