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Couche-Tard Removes Overhang, Opens Up Options With Scrapped 7-Eleven Deal

Couche-Tard Removes Overhang, Opens Up Options With Scrapped 7-Eleven Deal

OTTAWA—Alimentation Couche-Tard's ATD 7.60%increase; green up pointing triangle decision to drop its $47 billion pursuit of 7-Eleven's parent removes a major overhang for the Canadian convenience store operator, opening the door to a number of moves that should be well received by investors.
In the wake of the offer being withdrawn Wednesday, analysts expect a likely first move by Couche-Tard is a resumption of its share buyback program. The development also frees up management to turn more attention to its existing business which is facing some pressure from a weak consumer environment. Small-scale dealmaking that has served Couche-Tard well through its history is also likely in the cards.
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