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EG Group enters race to purchase Caltex with $3.9bn acquisition offer

The race to purchase the nation’s leading fuel retailer Caltex is heating up as Britain’s EG Group enters with a cash offer of $3.9 billion to acquire the company.

On Wednesday, the British retailer made an offer to acquire the company’s convenience retail business as well as a stake in newly-listed company Ampol, under which the remaining Caltex assets would be bundled.

EG has also indicated that it would consider acquiring up to 10 per cent of Ampol for additional cash.

In December, Caltex announced that it would revive its Ampol brand and rebrand as such after Chevron said it planned to withdraw the existing licence to use the Caltex brand in Australia.

The latest bid follows Caltex’s decision to grant due diligence to Canadian convenience store operator Alimentation Couche-Tard following an offer of $8.8 billion.

EG Group is one of the world’s largest independent fuel station and convenience store chains, and in 2018 snapped up Woolworths’ fuel business for $1.725 billion.

The group was reportedly in talks to team up with Macquarie Group Ltd in its attempt to acquire Caltex, Bloomberg reported in recent weeks.

The Caltex Board said it is currently considering the proposal and seeking advice from its financial and legal team.

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