Company News

Caltex Australia says Couche-Tard dropping takeover bid due to coronavirus uncertainty

April 20 (Reuters) - Takeover target Caltex Australia Ltd on Monday said Canada’s Alimentation Couche-Tard has decided not to proceed with a takeover bid for the company due to economic uncertainties posed by the coronavirus pandemic.

The convenience store, petrol station and refinery company said in a statement that Couche-Tard may re-engage with Caltex once there is sufficient clarity in the global outlook.

Couche-Tard raised its offer to A$8.8 billion ($5.6 billion) in mid-February, while privately-owned UK convenience store retailer EG Group made a rival offer of A$3.9 billion in cash for Caltex’s convenience stores plus shares in a spin-off company made up of its refining and fuel distribution assets.

$1 = 1.5748 Australian dollars Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Tom Hogue