While Alimentation Couche-Tard’s (ATDb.TO) reported pursuit of convenience store rival CST Brands (CST.N) is not without potential hurdles, Desjardins Capital Markets Analyst Keith Howlett believes Couche-Tard won’t bite off more than it can chew.

“We continue to remain confident that Couche-Tard will be financially disciplined in evaluating acquisition opportunities,” Howlett wrote in a report to clients on Wednesday.

The Wall Street Journal was first to report this week that Couche-Tard is closing in on a possible takeover of CST.  The Quebec-based convenience store operator disclosed late on Tuesday it’s in talks with third parties “regarding possible business transactions.”

Howlett warned in his report that Couche-Tard would face some hurdles if it agrees to buy CST; chiefly, competition concerns in eastern Canada and “possible issues” relating to CST’s stake in CrossAmerica Partnership LP. 

“Regional [Couche-Tard] operating executives are involved in the entire process, as they are primarily responsible for integration activities and future operating performance,” according to Howlett. “The CST Brands assets are generally attractive, but come with complications. Divestitures will be required in Atlantic Canada and Québec, in our view.”

These complications primarily relate to competition laws in Quebec and Atlantic Canada. Howlett reckons Couche-Tard may be forced to sell most of the estimated 860 Ultramar fueling stations under CST’s umbrella due to the company’s existing stakes in roughly 125 Circle K stores that sell Irving Oil as well as an estimated 300 Couche-Tard branded locations with pumps in Quebec and Atlantic Canada.

Despite these concerns, Desjardins maintained a Buy rating on Couche-Tard, setting a $68 12-month target, compared with Wednesday’s open of $62.