Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator, after previous unsuccessful attempts to purchase a French grocer and a global convenience store chain. The proposed takeover involves a bid exceeding $12 billion for a controlling interest in Zabka, valuing each share at 32 Polish zloty, approximately $11.90 Canadian dollars.
If the deal goes through, it will mark Couche-Tard’s largest acquisition to date, aligning with its strategic goal of expanding its market presence significantly. Zabka, with over 13,000 stores in Poland and Romania, offers a wide range of products, including quick-serve meals and autonomous store models.
In comparison, Couche-Tard operates 17,300 stores across 27 countries, with nearly 400 locations in Poland. Both companies focus on selling beverages and snacks, with Couche-Tard emphasizing fuel sales through its gas stations, a feature absent in Zabka’s offerings.
CEO Alex Miller emphasized the complementary strengths and customer-centric approach of both companies in a bid to enhance service delivery. The potential merger aims to generate approximately $250 million in cost savings within three years of finalizing the transaction.
The decision to target Zabka came after years of consideration, with founder Alain Bouchard’s renewed interest leading to the current bid announcement. The transaction enjoys support from Zabka’s management and major shareholders, with unanimous backing from investors holding 57% of the company’s shares, including private equity firms CVC Capital Partners and Partners Group.
The proposed acquisition is pending regulatory approvals and is anticipated to conclude by December. The extent of Couche-Tard’s ownership in Zabka will depend on shareholder responses to the offer. Should Couche-Tard acquire at least 95% of Zabka’s voting rights, it may delist the company from the Warsaw Stock Exchange.
Analysts view the move as a strategic advancement for Couche-Tard, positioning the company for long-term growth. RBC Capital Markets analyst Irene Nattel described the plan as both bold and measured, suggesting it could significantly benefit Couche-Tard’s future expansion plans.