British fuel station and convenience store operator EG Group Ltd. is looking to make an offer to buy Caltex Australia Ltd., challenging the A$8.66 billion takeover proposal made by Canada's Alimentation Couche-Tard Inc. in November 2019, Bloomberg News reported Jan. 6, citing people familiar with the matter.
EG Group, which was formed from the combination of Euro Garages Ltd. and TDR Capital LLP's EFR Group BV in 2016, has reportedly hired a financial adviser to help it assess making an offer for Caltex Australia. However, no financial decisions have been made, the news outlet said.
An EG Group representative declined to comment, while a spokesman for Caltex Australia said the company does not comment on speculation, Bloomberg said.
On Dec. 3, 2019, Caltex Australia rejected Couche-Tard's takeover offer, saying it undervalues the company. It allowed Couche-Tard to revise its offer, but the Canadian company has not submitted any new proposals so far.
Meanwhile, for EG Group, a potential deal with Caltex Australia would expand its presence in Australia following the company's acquisition of Woolworths Group Ltd.'s fuel convenience stores in the country in 2019.
In October 2019, Bloomberg News reported that EG Group is considering launching an IPO in 2020. However, EG Group's backer, TDR Capital, declined to comment.
Caltex Australia's stock closed up 1.15% to A$34.76 on Jan. 6 in Australia.