QUEBEC—Alimentation Couche-Tard struck a HK$2.79 billion (US$360 million) deal with Convenience Retail Asia Ltd. to acquire subsidiary Circle K HK, which operates a network of 340 company-operated convenience stores in Hong Kong and 33 franchised sites in Macau, the Quebec-based company announced.
Circle K is the second-largest convenience store chain in Hong Kong behind 7-Eleven. The cash deal is expected to close by December 31, 2020.
“Circle K Hong Kong is one of the best convenience store operators in Asia and will be an excellent fit within our company,” Brian Hannasch, president and CEO of Couche-Tard said in a press release. “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.”
Victor Fung, chairman of Convenience Retail Asia, said, “The Board fully endorses the sale of Circle K Hong Kong to our long-term partner and franchisor. This is a win-win for both companies. Our investors will gain from a good return on their investment and Couche-Tard will benefit from a first-class organization of dedicated and loyal team members who have contributed to the success of Circle K in Hong Kong.”