Topic: How To Invest

Power Growth Investor Hotline – Friday, November 29, 2019

Article Excerpt

ALIMENTATION COUCHE-TARD INC., $43.46, is a buy. The retailer (symbol ATD.B on Toronto), operates 12,498 convenience stores across North America and Europe. In a bid to add value for investors, the company now aims to take over Australian fuel retailer and refiner Caltex. That company operates approximately 2,000 service stations where it sells gasoline as well as operating retail stores. Couche-Tard’s first offer of $32 Australian a share ($28.55 Cdn.), which was not revealed until recently, was rejected by Caltex. As well, to help thwart that bid, Caltex unveiled plans to spin off a 49% interest in 250 retail sites into a REIT. That would make it a lot less attractive to Couche-Tard. A successful acquisition of Caltex would make it Couche-Tard’s biggest-ever acquisition. It would also let the Quebec-based retailer expand beyond North America and Europe. That has been one of Couche-Tard’s goals for some time. Acquisitions are a key part of the company’s growth strategy. That adds risk, but it does a..