Canadian convenience store operator Alimentation Couche-Tard (ATD) has agreed to buy 2,200 gas stations in Europe from TotalEnergies SE (TTE) for €3.1 billion ($3.3 billion U.S.).
Couche-Tard is purchasing all of the French oil company's retail assets in Germany and the Netherlands, as well as 60% of its business in Belgium and Luxembourg.
Laval, Quebec-based Couche-Tard, whose brands include Circle K, has been looking for acquisitions in foreign markets for several years.
The deal with TotalEnergies comes as gas stations in Europe transition from selling gasoline to becoming food and service centres.
The European Union is banning the sale of gasoline for motor vehicles in 2035 as part of an effort to become carbon neutral across the continent.
The deal helps TotalEnergies achieve its target of reducing its petroleum product sales by 30% by 2030 as part of its plan to cut carbon emissions.
The French company has said that it plans to deploy charging stations for electric vehicles on major roadways and in large cities throughout Europe.
Couche-Tard said it will fund the acquisition with cash, existing credit facilities, a commercial paper program and loans. The deal is expected to close by year’s end.
Couche-Tard’s stock has risen 19% in the last 12 months to trade at $62.61 per share.
TotalEnergies’ stock has risen 13% over the past year to trade at $57.56 U.S. a share.
