Couche-Tard eyes Asia for acquisition

MONTREAL• After gobbling up convenience-store chains in North America and Europe, Alimentation Couche-Tard Inc. has its eyes on Asia, where the company is seeking to enter the Thai and Indian markets.

Co-founder and chairman Alain Bouchard told shareholders that the Montrealbased company is crafting a strategy for the two countries, while also looking for ways to increase its presence in southern China, where Couche-Tard has a foothold through licensing agreements but doesn’t operate stores.

“We’ve had concrete conversations with people, with management teams, with companies,” chief executive Brian Hannasch said in an interview after the annual meeting in Laval.

“There’s a lot of work to do to really understand the cultures, the ability to have a level playing field, to compete fairly.”

Couche-Tard, which started with one store in a Montreal suburb in 1980, will soon have a footprint in 48 U. S. states. Bouchard has gradually expanded the company, first in its home market, then to the rest of Canada, before entering the U. S. in 2001 and Europe in 2012. Some investors are wondering what will drive Couche-Tard’s growth given sluggish demand in parts of the U.S. and threats to gasoline consumption posed by the rise of electric and more fuel- efficient vehicles. The shares have fallen 0.7 per cent this year to C$60.45, after more than doubling since the start of 2014.

Couche- Tard has a nofrills reputation, with top management known f or visiting scores of stores to s pot weaknesses before making acquisitions. The company is digesting a string of purchases, including CST Brands, which gave it a stronghold in Texas but also exposed it to Hurricane Harvey last month.