Couche-Tard to divest 35 fuel stations as part of Giant Eagle deal
The FTC has intervened in the $1.57B acquisition to maintain competition and prevent higher fuel prices in Midwest markets.
The Federal Trade Commission has ordered Alimentation Couche-Tard to divest 35 retail fuel stations as a condition for approving its proposed $1.57 billion acquisition of 270 gas stations from Giant Eagle, Inc.
The move comes in response to concerns that the deal, as originally structured, would reduce competition and drive up fuel prices for consumers in parts of Indiana, Ohio, and Pennsylvania. Couche-Tard, the Canadian parent company of Circle K, operates more than 7,100 stores in the United States.
According to the FTC, its acquisition of Giant Eagle’s fuel outlets would eliminate direct competition in numerous local markets where the two companies currently monitor and respond to each other’s pricing.
To address these concerns, Couche-Tard has agreed to sell the 35 specified locations to Majors Management, LLC, a seasoned operator of retail fuel outlets. The consent order stipulates that Couche-Tard must complete the divestitures within 20 days of finalizing the acquisition and must preserve the competitiveness and marketability of each site until the transfer is complete.
As part of the conditions, Couche-Tard is prohibited from re-acquiring any of the divested stations for the next decade and must notify the FTC in advance if it intends to acquire any other stations deemed competitively significant within the affected regions.
