EG Group Makes a Play for Australia's Largest Service Station Network

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EG Group Makes a Play for Australia's Largest Service Station Network

02/19/2020
Logos for Caltex and EG Group

SYNDEY — Caltex Australia Ltd. has another suitor: EG Group.

According to Caltex, the U.K.-based EG Group submitted an offer to acquire tis convenience store business for $3.9 billion cash. The proposal also calls for a new separate company, Ampol, to own the remaining Caltex assets including its fuel and infrastructure business and Caltex's international trading and shipping operations.

If accepted, Caltex shareholders would receive approximately $15.62 in cash and one share of Ampol for each Caltex share they hold, Caltex said.

Ampol would be listed in the Australian Stock Exchange.

In addition, according to Caltex, EG has indicated that it is also prepared to consider acquiring up to 10 percent of Ampol for additional cash consideration.

The company's board of directors is reviewing the proposal.

EG Group has been rumored to be mulling an offer for Caltex. The bid comes a week after Canada-based Alimentation Couche-Tard Inc. upped its offer to acquire 100 percent of Caltex. Under the revised proposal, Couche-Tard would pay a cash price of A$35.25, or U.S. $23.73, per ordinary share, as Convenience Store News previously reported. 

At the time, Couche-Tard said it would be its final offer — following two previous proposals this past fall — unless there was a competing proposal on the table. Earlier this week, Caltex said it would allow Couche-Tard to conduct additional due diligence.

Sydney-based Caltex is a transport fuel supplier, with a network of approximately 2,000 company-owned or affiliated sites across Australia.