Skip to main content

Caltex Australia on Tuesday rejected a sweetened A$8.61 billion ($5.84 billion) takeover offer from Canada’s Alimentation Couche-Tard Inc but offered to give its suitor private information to formulate a higher bid.

Caltex had revealed the A$34.50 per share proposal from Couche-Tard last week. It was the second offer from the Canadian convenience store operator in as many months after Caltex turned down its first A$32 per share approach.

Caltex noted that the sweetened offer represented a “low takeover premium” of 16% to Caltex’s last closing price of A$29.79 before the offer. Caltex’s shares were at A$34.06 on Tuesday.

Story continues below advertisement

Caltex said the offer did not take into account the “consistent performance” and “international growth trajectory” of its fuels and infrastructure business, or the “significant opportunities” for its convenience retail business.

“Caltex has a well-developed strategy, privileged assets, strong leadership and compelling growth opportunities that the Board believes will deliver attractive value for its shareholders over time,” Caltex Chairman Stephen Gregg said.

Caltex said it had offered to give Couche-Tard selected non-public information to allow it to formulate a revised proposal “that appropriately reflects the value of Caltex.”

The Australian petrol pump and convenience store operator is under pressure to turn around its business due to weak consumer demand and margin pressure.

If the deal goes ahead, it would mark Couche-Tard’s first foray into Australia, and its largest deal, according to Refinitiv data. The Canadian company said it has been looking at Asia for several years.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter
To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies