{"id":101061,"date":"2017-05-29T07:30:23","date_gmt":"2017-05-29T11:30:23","guid":{"rendered":"https:\/\/depquebec.com\/?p=101061\/"},"modified":"2017-05-29T08:17:48","modified_gmt":"2017-05-29T12:17:48","slug":"cst-acquisition-by-couche-tard-ftc-decision-on-monday-june-19","status":"publish","type":"post","link":"https:\/\/depquebec.com\/en\/cst-acquisition-by-couche-tard-ftc-decision-on-monday-june-19\/","title":{"rendered":"CST acquisition by Couche-Tard: FTC decision on Monday, June 19?"},"content":{"rendered":"
On August 22, 2016, CST<\/a><\/strong> announced\u00a0a historic agreement<\/a> with Alimentation Couche-Tard<\/strong><\/a> to sell all of its assets under the following conditions:<\/p>\n With this major transaction, the number of Couche-Tard<\/strong><\/a> stores in the United States will increase from 5,304<\/strong><\/a>\u00a0in 2016 to 7,232<\/strong><\/a> in 2017, the company now hovering behind its rival 7-Eleven<\/strong><\/a> which has 8,303<\/strong><\/a>.<\/p>\n But of course, all this is conditional upon approval of the transaction by the US \u00a0Federal Trade Commission<\/strong><\/a>, which is the counterpart of the Competition Bureau<\/strong> in Canada.<\/p>\n Now, it has been more than nine months<\/strong> since the transaction was announced and still no decision. Is this normal?<\/p>\n It should be noted that such an agreement must follow a number of key steps to be approved<\/a>.<\/p>\n After the companies report a proposed deal, the agencies will do a preliminary review to determine whether it raises any antitrust concerns that warrant closer examination. Because the FTC<\/strong> <\/a>and the Department of Justice<\/strong> share jurisdiction over merger review, transactions requiring further review are assigned to one agency on a case-by-case basis depending on which agency has more expertise with the industry involved. During the preliminary review, the parties must wait 30 days (15 days in the case of a cash tender or bankruptcy transaction) before closing their deal. Based on what the agency finds, it can: 1) terminate the waiting period and allow the parties to consummate their transaction (this action often is referred to as an \u201cearly termination\u201d); 2) let the waiting period to expire, which allows the parties to consummate the transaction; or 3) if the initial review has raised competition issues, the agency may extend the review and ask the parties to turn over more information so it can take a closer look at how the transaction will affect competition (this action often is referred to as a \u201csecond request.\u201d). NOTE : that’s what the FTC<\/strong> <\/a>did, which was announced by CST<\/strong> on November 17th.<\/a><\/em><\/p>\n The vast majority of deals reviewed by the FTC<\/strong> <\/a>and the Department of Justice are allowed to proceed after the first, preliminary review.<\/p>\n According to the Dechert\u00a0Antitrust<\/a> Merger Investigation Timing Tracker<\/strong>, or DAMITT,<\/strong> the average duration for an approval process\u00a0has been increasing steadily over the past three years to reach\u00a09.9 months last year, as indicated in the following graph:<\/p>\n Applying this average to the Couche-Tard<\/a> – CST<\/a>\u00a0<\/strong>transaction would mean that the decision would be announced on Monday, June 19, 2017<\/strong>, ending the suspense and finally allowing the shareholders of CST<\/a>\u00a0<\/strong>to pocket the gains from the sale of their shares .<\/p>\n Put this date on your agenda and make your bets!<\/p>\n","protected":false},"excerpt":{"rendered":" On August 22, 2016, CST announced\u00a0a historic agreement with Alimentation Couche-Tard to sell all of its assets under the following<\/p>\n","protected":false},"author":9,"featured_media":101060,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[223,1750],"tags":[265,945,1337,1339],"class_list":["post-101061","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsdep","category-profiles","tag-couche-tard-en","tag-cst-en","tag-ftc-en","tag-merger"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/depquebec.com\/wp-content\/uploads\/2017\/05\/fusion-couche-tard-cst.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/depquebec.com\/en\/wp-json\/wp\/v2\/posts\/101061","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/depquebec.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/depquebec.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/depquebec.com\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/depquebec.com\/en\/wp-json\/wp\/v2\/comments?post=101061"}],"version-history":[{"count":0,"href":"https:\/\/depquebec.com\/en\/wp-json\/wp\/v2\/posts\/101061\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/depquebec.com\/en\/wp-json\/wp\/v2\/media\/101060"}],"wp:attachment":[{"href":"https:\/\/depquebec.com\/en\/wp-json\/wp\/v2\/media?parent=101061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/depquebec.com\/en\/wp-json\/wp\/v2\/categories?post=101061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/depquebec.com\/en\/wp-json\/wp\/v2\/tags?post=101061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
<\/a><\/p>\n