Canadian Couche-Tard in Talks to Acquire Stake in Ipiranga from Ultra Group

Canadian convenience store and gas station network giant, Alimentation Couche-Tard, is reportedly in advanced negotiations with the Brazilian Ultrapar Group to acquire a stake in its subsidiary, Ipiranga. Couche-Tard operates over 27,000 locations across 27 countries, including Latin American nations like Mexico, Honduras, and Guatemala, but currently lacks a presence in South America. This potential acquisition of Ipiranga is thus seen as a strategic gateway for its entry into Brazil and the broader South American region. Couche-Tard reported total revenues of US$76 billion and a gross profit of US$14.5 billion in its 2026 fiscal year. The company has a well-established history of growth through acquisitions, exemplified by its purchase of Circle K, one of its primary fuel station and convenience store brands, in the early 2000s. Last year, the group attempted to acquire convenience store giant 7-Eleven with an offer exceeding US$40 billion, though the proposal was eventually withdrawn. The company has consistently highlighted Latin America as a region of significant interest for expansion, stating in its 2026 financial report that “Latin America and Southeast Asia continue to be highly attractive markets for expansion.” The decision to sell a stake in Ipiranga aligns with Ultra Group's strategy to allocate its capital advantageously. Ipiranga represents a substantial portion of Ultra Group's operations, contributing significantly to its cash generation, with an adjusted EBITDA of R$1.6 billion in the first quarter. This move allows Ultra Group to optimize its capital structure without relinquishing control over this vital business, ensuring continued strength and competitiveness while enhancing overall shareholder value.