NEW YORK (TheStreet) -- Shares of CST Brands (CST)  were advancing 5.82% to $46.90 in mid-morning trading on Tuesday as Alimentation Couche-Tard (ANCUF) is nearing a deal to buy the San Antonio-based fuel and convenience retailer. 

A deal from the Canadian convenience store operator could come this week and value CST at around $3.4 billion, based on its market cap. There's no guarantee a deal will be reached, sources said, according to the Wall Street Journal.

CST has more than 1,000 convenience stores in the southwestern U.S. and was spun off from Valero Energy (VLO) in 2013. 

Engine Capital pressed CST in December to explore options, saying it could attract a buyer at $50 to $55 per share. In May, CST sold approximately 80 stores in California and Wyoming to 7-Eleven for $408 million, the Journal reports. 

Couche-Tard has been working to consolidate the convenience store industry. It operates stores in Canada, the U.S. and Europe under the names of Couche-Tard, Kangaroo Express and Circle K, among others. 

Shares of Couche-Tard were higher in mid-morning trading on Tuesday. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate CST BRANDS INC as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here:

CST

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