Canadian convenience store giant Couche Tard makes $7.7B bid for Caltex

LAVAL, Que.—Australian company Caltex says it has received an unsolicited purchase offer from Alimentation Couche-Tard valued at C$7.7 billion.

If the offer is accepted, the Laval, Que.-based Couche-Tard would make a first breakthrough in the Australian market.

The proposal for AU$34.50 per share is for the redemption of all Caltex shares outstanding.

This is an unsolicited, non-binding, conditional and confidential offer, the company said in a statement released Tuesday morning local time.

The proposal also includes the payment of certain dividends to shareholders at the time of the eventual takeover.

Caltex says a previous offer at AU$32 per share was rejected by the shareholders for being value too low.

Caltex operates approximately 2,000 service stations where it operates gasoline and retail sales.

The offer is subject to audit and approval, as well as a vote of the boards of directors of both companies involved.