Couche-Tard set to take another run at Ampol purchase

Indications are that Couche-Tard has not lost interest in the fuel refining and retailing company that was previously known as Caltex. Picture: Toby Zerna

Signs are emerging around the market that large-scale mergers and acquisition activity in Australia could soon be returning, with expectations mounting that Couche-Tard will come back to the negotiating table to buy Ampol.

Market participants say the Canadian convenience store operator’s decision to poach Ampol chief commercial officer Louise Warner is a clear signal that that group has intentions to revive its Ampol takeover efforts.

Couche-Tard is believed to still own a small stake in Ampol, which offers another indication that the group has not lost interest in the fuel refining and retailing company that was previously known as Caltex.

Ms Warner is believed to hold insights into Ampol that would help Couche-Tard buy and improve the company.

She recently established Ampol’s first overseas operation, Ampol Singapore, which includes the company’s global trading and shipping function.

Couche-Tard’s rationale for the acquisition of Ampol was to support its aspirations for global expansion into new markets.

It abandoned its $8.8bn takeover plans for Caltex in April due to the coronavirus.

At that time, the thinking was the convenience store giant had left the door open for another deal further down the track.

Ampol has since sold off some of its fuel retail property sites to Charter Hall.

Couche-Tard last year made three bids for Ampol, two of which were rejected, but a third at $35.25 per share won the company the right to conduct due diligence.

However, at that time, the oil price collapsed and global economies were left reeling by the onset of COVID-19.

The Ampol share price has since fallen to $23.77, taking its market value to $5.91bn.

Meanwhile, other major Australian companies expected to be subject to further M&A activity are the country’s largest building materials supplier Boral and energy giant Woodside Energy.

The appointment of two directors to the Boral board from Seven Group, including its chief executive Ryan Stokes and boosted expectations that the $5.26bn company would sell or demerge its North American business.

Former CSR boss Rob Sindel, has also been appointed as an independent director, leading some to expect that the group would sell its Australian property assets, given he has expertise in this area when he ran Boral’s competitor.

Lastly, Woodside Energy may be the frontrunner to buy Chevron’s 16.67 per cent stake in the North West Shelf, but some believe it will also be trying to acquire the same 16.67 per cent interest in the project from Shell.

This would prove to be a monster deal for Woodside, given some suggest the value of the Chevron stake is up to $5.8bn.

A purchase would likely require a major equity raising, but Woodside is under pressure to make acquisitions to grow earnings.