Canadian convenience retailer Couche-Tard is looking to expand in Europe through its planned takeover of Norwegian-based Statoil Fuel and Retail (SFR ).
The NOK15.9bn acquisition would see Couche-Tard gain a foothold in some of Europe’s top-performing economies, the company said this morning (18 April).
Speaking during a conference call with analysts, Couche-Tard said the deal would see it expand significantly in the Baltics, Poland and western Russia.
“Moving into Scandinavia and Europe is an important step in implementing Couche-Tard’s growth strategy,” CEO Alain Bouchard said.
Couche-Tard said SFR would continue to operate on a stand-alone basis. “We will retain the existing management,” Bouchard confirmed.
Management added the acquisition is expected to be “immediately accreditive on earnings per share”.
The offer would see Couche-Tard pay NOK53 per SFR share, representing a premium of 52.5% on SFR’s closing price yesterday and a premium of 31.7% to the volume weighted average share price over the past six months. The offer has received the backing of SFR’s board.
“Our board has undertaken a careful review of the terms and conditions of the offer and has resolved to recommend the offer, which we believe recognises the strategic value potential of Statoil Fuel and Retail and delivers a considerable cash premium to our shareholders,” said SFR chairman Birger Magnus.
