Couche-Tard is a leader in convenience store and road transportation fuel retail in the Scandinavian countries, Baltic countries, Ireland, and has presence in Poland
Alimentation Couche-Tard Inc. (“Couche-Tard” or the “Company”) (TSX: ATD.A) (TSX: ATD.B) today provided the following update with regards to its proposal to acquire Caltex Australia Limited (ASX: CTX) (“Caltex”).
As a result of the committed efforts that teams at both companies have made, Couche-Tard would like to confirm that due diligence for the proposed transaction has been substantially completed. The Company’s work confirms that Caltex is a strong strategic fit for Couche-Tard and an important component of its Asia Pacific expansion strategy. There are significant opportunities to be realized from combining both businesses and Couche-Tard remains highly interested in formalizing a transaction.
However, the current situation in the world is highly uncertain. The COVID-19 crisis is first and foremost a human tragedy that has impacted millions of people and has also been meaningfully disruptive to economies and businesses around the world, including the Australian fuel and convenience retail industries. Moreover, Couche-Tard is focused on managing its own business through this period and prioritizing the health, safety and well-being of its employees, customers and the communities it serves.
Given that uncertainty and the impact it is having on our outlook for Caltex’s business, and consistent with Couche-Tard’s disciplined approach to acquisitions, the Company is not in a position to make a revised proposal at this time, despite having secured the necessary financing commitments.
Brian Hannasch, President and Chief Executive Officer of Couche-Tard, said: “We remain convinced of the long-term financial and strategic merits of an acquisition of Caltex and all the benefits it would offer to the shareholders of both companies. Despite the COVID-19 situation, we have worked to complete due diligence on schedule through a significant investment of time and money. Our current plan would be to re-engage the process once there is sufficient clarity as to the global outlook, and the work done to date should mean that we will be able to quickly formalize our proposal at that time.”
Mr. Hannasch added: “Couche-Tard’s management team is grateful for the backing we received from all our stakeholders throughout this process. We want to thank our team members for their hard work during the due diligence and the people at Caltex for their focused effort made to address our questions. We have been impressed by their knowledge and dedication, especially during the challenging period through which we have all been operating. And finally, we want to thank our banking partners for their unwavering commitment, even in the face of increased market volatility due to the spread of COVID-19. We have been in regular discussion with them and they remain prepared to move forward in support of a transaction.”
Source: Company Press Release