Couche-Tard reportedly offers $7.5-8 billion for Cumberland Farms

what happened

Canada's Alimentation Couche-Tard has offered between $7.5 billion and $8 billion for Cumberland Farms, the US convenience store and fuel chain formerly called EG Group, according to a Saturday report from Britain's The Times, which Reuters cited. That range sits below the $9 billion valuation the company had targeted for a planned US IPO.

Neither Couche-Tard nor Cumberland Farms answered Reuters' requests for comment. People close to Cumberland Farms told The Times the company still intends to list in the US. The paper also said the IPO was postponed after the firm drew takeover interest, including from infrastructure investor Stonepeak.

Private equity firm TDR Capital holds 50% of the company, while British billionaires Issa brothers each own 25%. The chain runs over 3,200 convenience and fuel outlets in the US and Europe. The Financial Times reported earlier this month that a listing is unlikely before 2027.

why it matters

For Couche-Tard, the deal would rank among the largest in convenience and fuel retail. A valuation below earlier expectations may signal what investors are willing to pay for the business before a listing, which matters for IPO timing and for other dealmakers.

market impact

Couche-Tard (ATD): a large purchase could weigh on the shares through deal financing costs

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