Alimentation Couche-Tard Inc. in a news release last week announced plans to enter into an agreement with one of its wholly-owned subsidiaries to create a joint venture with Shell Oil Products US to operate approximately 100 convenience stores in the greater Chicago metropolitan area.

Per an agreement between the parties, details of the joint venture can not be disclosed at this time.

“These stores are located in the third largest city in the U.S. Strategically, this acquisition would be a complement to our expansion and growth plans for the Midwest Division,” said Darrell Davis, vice president of operations, Circle K Midwest Division.

The transaction, which is subjected to final management approval of both companies, regulatory approvals and closing conditions, is expected to close by the end of 2009.

Of the 100 c-stores within the scope of the proposed venture, 89 stores are currently operated by third party operators under an operator agreement with Shell, including 32 operated under the Circle K banner by Couche-Tard’s Midwest Division. The remaining 11 locations currently operate as Shell retail marketers under a retail lease agreement. The majority of the 100 sites would be operated by Couche-Tard’s Midwest Division under the Circle K banner.

Shell motor fuel and branded products would continue to be marketed at all 100 locations. All 100 stores held by Shell would be transferred to the joint venture through a combination of purchased and contributed fee and lease sites.

“In addition to being an excellent fit within our current operating framework, it would also provide a much larger presence and would allow us to more easily target out growth in the greater Chicago metropolitan area,” concluded Davis.

Alimentation Couche-Tard Inc. is the leader in the Canadian c-store industry. In North America, Couche-Tard is the second largest independent c-store operator (whether integrated or not with a petroleum company) in terms of number of stores. Couche-Tard currently operates a network of 5,906 c-stores which include 4,122 motor fuels dispensing, located in 11 large geographic markets, including eight in the U.S. covering 43 states and three in Canada covering all ten provinces.