Couche-Tard takeover offer not enough for Caltex board

Caltex says the Canadian bidder has walked away from any deal

Alimentation Couche-Tard was willing to offer a price of between $25 and $30 a share for Caltex, according to sources, but the thinking is that such a proposal would not be enough to satisfy the board of the Australian-listed fuel retailer and refiner at the current time.

Caltex announced on Monday that the Canadian bidder had walked away from an original $8.8bn bid due to heightened economic uncertainty from the pandemic.

This was even though it completed all of its due diligence and had its adviser Goldman Sachs doing the paperwork for a transaction as late as last week.

Some commented on Monday that affairs appear to remain remarkably friendly between the two sides, suggesting that a deal could be resurrected further down the track.

The Canadian convenience store giant was able to secure financing, but said the financial downturn made it wiser to leave any offer until conditions were less volatile.

Caltex shares closed on Monday at $21.72.

Couche-Tard’s earlier offer for Caltex was $35.25 a share.