Caltex mulls big bid
Local fuel giant Caltex has received an $8.6 billion Canadian takeover bid.
Caltex has informed the ASX that Canada-based Alimentation Couche-Tard (ACT) made a conditional, non-binding $34.50-a-share bid - 23 per cent higher than the share price over the past month.
Caltex runs the third-largest refinery in the country at Lytton in Brisbane, producing around 6.5 billion litres of fuel a year.
Caltex said it is currently considering the proposal with its financial and legal advisors.
The bid is highly conditional, according to Caltex, and would require among other things due diligence, financing, no material asset sales and obtaining Foreign Investment Review Board (FIRB) approval.
“The discussions between Caltex and ACT are at a preliminary stage, the proposal is highly conditional and there is no certainty that these discussions will result in a transaction,” Caltex said.
Caltex is the largest player in Australia’s wholesale fuel market, making about a third of the total national sales. It also holds about 15 to 17 per cent market share in retail fuel.
Analysts say the company’s deep involvement in Australia could make the FIRB approval difficult.