Caltex (ASX:CTX) Share Price Rises On Takeover Speculation

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The Caltex Australia (ASX: CTX) share price is rising today on further talk of a takeover.

Caltex Australia is known for its popular fuel and convenience stores. The multi-billion dollar company also operates in the petroleum industry by buying, refining and distributing fuel products throughout Australia. It’s been in the business more than 100 years.

Caltex’s Latest Update About The Takeover

About a month ago Caltex received a takeover offer from Alimentation Couche-Tard Inc.

The takeover offer was at a price of $34.50 per share, less any dividends declared by Caltex. However, the offer was unsolicited, conditional, confidential, non-binding and indicative.

The Caltex Board concluded that the proposal undervalued the company and does not represent compelling value for Caltex’s shareholders.

However, the Board did offer to provide Alimentation Couche-Tard Inc with selected non-public information to allow the Canadian business to come up with a revised proposal.

There was then media speculation that EG Group, which is one of the world’s biggest gas station and convenience store chains, is considering bidding for Caltex Australia as well.

EG Group already has a presence in Australia after acquiring 540 Australian service station sites from Woolworths (ASX: WOW) last year.

Today’s Takeover Announcement

Caltex acknowledged that there had been recent media speculation and that it has been approached by a number of parties, including EG Group, who have indicated they are potentially interested in making a proposal to acquire Caltex or some of its assets.

However, Caltex confirmed it had not yet received any proposal to acquire Caltex.

The company said there is no certainty that any binding proposal will be made by any of the parties who have expressed potential interest.

The Caltex Australia share price is up almost 1% in reaction after confirming that EG Group is indeed interested in potentially making a bid for Caltex.

Jaz Harrison

Jaz Harrison

Jaz is a keen investor who loves to thoroughly poke holes in an investment idea before it has a chance of making it into her portfolio. Jaz invests for the long-term and doesn't sweat the small stuff. She strongly believes that empowering people with knowledge is the best way for them to take charge of their finances, which is exactly the approach she takes with her own money and investments.