CST Brands signs convenience store deal with Sobeys to operate Shell stations

MONTREAL – Convenience store operator CST Brands Inc. has signed an agreement with Sobeys to sell Shell fuel at nine locations in Quebec under the Depanneur du Coin brand name.

Texas-based CST (NYSE:CST) is buying four Sobeys (TSX:EMP) locations that will continue to sell Shell fuel and will change the fuel brand at five of its stores to Shell, effective early next year.

The food products and fuel at the stores will be supplied by Sobeys Quebec and its petroleum division, which is the owner and distributor of about 205 Shell locations in the province.

Christian Houle, senior vice-president of CST’s Canadian division, said the agreement is part of the company’s plans to expand its Depanneur du Coin presence in Eastern Canada.

The five new Shell stations are close to Sobey’s IGA stores.

CST operates 850 retail fuel sites in Quebec, Ontario and Atlantic Canada. It distributes fuel under several banners and is the exclusive retailer for Ultramar.