LAVAL – due to the uncertainty caused by the crisis of the COVID-19, Couche-Tard has temporarily relinquished to acquire the chain of convenience stores and service stations australian Caltex.
“The current global situation is highly uncertain […]. Couche-Tard wants to focus on the management of his own business during this period of crisis and prioritize the health, safety and well-being of its employees, its customers and the communities it serves,” said Couche-Tard, in a statement, Sunday.
Because of this uncertainty, the retail giant proximity based in Laval explains not be able to “submit a revised proposal for the time being”, and this in spite of obtaining commitments for the necessary financing.
However, the company has confirmed that Caltex “is an important element of its expansion strategy in Asia‐Pacific” and that Couche-Tard “remains very concerned” by the conclusion of a transaction.
“We remain convinced of the financial benefits and long-term strategic acquisition of Caltex and all the benefits it would provide to the shareholders of both companies,” said Brian Hannasch, president and chief executive officer of Couche-Tard. Despite the situation of the COVID-19, we have worked to complete the due diligence within the time limits provided thanks to a significant investment of time and money. Currently, our plan is to resume the process once the global outlook will be sufficiently clear, and the work completed to date should enable us to formalize quickly our proposal at this time”.
Couche-Tard had made an offer to purchase, which has been enhanced two times to put the hand on Caltex. The quebec company has 9 799 stores in North America and 2697 stores in Europe.
Caltex is at the head of around 2000 service stations and convenience stores, including the shops owned by him and a network of franchisees.