Alimentation Couche-Tard Inc. confirms that due diligence for the proposed transaction has been substantially completed.
Last year, Caltex received a proposal from the Canadian convenience store operator, to acquire all shares in the company.
The Company’s work confirms that Caltex is a strong strategic fit for Couche-Tard an important component of its Asia Pacific expansion strategy. There are significant opportunities to be realised from combining both businesses and Couche-Tard remains highly interested in formalising a transaction.
However, due to the current COVID-19 situation, Couche-Tard is focused on managing its own business through this period and prioritising the health, safety and well-being of its employees, customers and communities it serves.
The Company is not in a position to make a revised proposal at this time, despite having secured the necessary financing commitments.
“We remain convinced of the long-term financial strategic merits of an acquisition of Caltex and all the benefits it would offer to the shareholders of both companies,” says President and CEO of Couche-Tard, Brian Hannasch.
“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 formalise our proposal at that time.”
Mr Hannasch adds that the management team is grateful for the backing received by stakeholders throughout this process and, “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.”
