Canadian convenience store operator Alimentation Couche-Tard has entered an agreement to acquire US convenience store chain CST Brands for approximately $4.4bn.

As part of the deal, Couche-Tard will buy a 100% stake in CST for $48.53 a share in cash, which also includes the assumption of net debt.

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Scheduled to be completed in early next year, the acquisition is subject to CST’s stockholders' approval and regulatory approvals in both Canada and the US.

"We are pleased to reach this agreement with Couche-Tard, which we expect to provide immediate and compelling value to our stockholders."

Based in San Antonio, Texas, CST is an independent retailer of motor fuels and convenience merchandise in North America.

The company employs more than 14,000 people at 2,000 locations across the Southwestern US.

CST Brands chairman, president and CEO Kim Lubel said: "After the board’s comprehensive review of strategic alternatives to enhance stockholder value, we are pleased to reach this agreement with Couche-Tard, which we expect to provide immediate and compelling value to our stockholders.

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“Our board believes that Couche-Tard is an ideal partner for CST. With Couche-Tard, we will build upon an extensive and attractive convenience and fuel network with enhanced scale and global reach to best position the combined company for future growth.”

Couche-Tard operates more than 16,000 stores across Canada, the US, Europe, Mexico, Japan, China, and Indonesia.

The company's corporate stores are mainly operated under Couche-Tard, Mac's, Circle K and On the Run, as well as affiliated brands 7-jours, Dairy Mart, Daisy Mart and Winks.

Upon completion of the latest deal, Circle K will establish a new business unit in San Antonio with attached shared services operations.

Couche-Tard has also entered an agreement with Parkland Fuel, following which it would divest several Canadian assets of CST after the $750m merger.