The U.K.’s EG Group is in talks to team up with Macquarie Group Ltd. in its attempt to acquire Caltex Australia Ltd., people familiar with the matter said.
EG Group is in discussions with an arm of Macquarie to partner on the potential deal, according to the people, who asked not to be identified because the information is private. If their bid is successful, EG Group would keep Caltex’s main retail business, while Macquarie would take on its refinery unit and some infrastructure assets, the people said.
Caltex has a market value of about A$8.2 billion ($5.5 billion) in Sydney. EG Group, which is one of the world’s largest independent gas station and convenience store chains, has been working with financial advisers as it evaluates making an offer for the company, the people said.
Bringing in a partner could help boost EG Group’s chances as it competes with Canadian convenience giant Alimentation Couche-Tard Inc., which offered to take over Caltex for A$8.6 billion last year. While Caltex rejected the bid, Couche-Tard was given access to select non-public information to entice it to sweeten its offer.
No firm agreements have been reached, and EG Group could opt to team up with another partner, the people said. Representatives for EG Group and Macquarie declined to comment, while Caltex didn’t immediately respond to emailed queries outside regular business hours in Australia.
EG Group, which is controlled by British billionaire brothers Mohsin and Zuber Issa, has expanded rapidly through acquisitions over the past few years. It’s turned into a global giant with about 5,000 fuel station and convenience store sites across Europe, North America and Australia, according to its website.
Extracted from Yahoo Finance