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 offer, valued at over $12 billion, aims to secure a controlling stake in Zabka, pricing each share at 32 Polish zloty or approximately $11.90 in Canadian dollars.

If the deal goes through successfully, it would mark Couche-Tard’s largest acquisition to date, aligning with its strategic goal of expanding its market presence significantly. Zabka, known for its network of over 13,000 convenience stores in Poland and Romania, presents a promising opportunity for Couche-Tard, which operates 17,300 stores across 27 countries, including nearly 400 in Poland.

Both companies share similarities in their product offerings, emphasizing a wide selection of beverages, snacks, and hot food options. Notably, Zabka boasts autonomous locations and a focus on quick-serve meals, while Couche-Tard’s strength lies in its beverage and fuel offerings, with approximately 13,200 locations featuring gas stations.

Couche-Tard’s CEO, Alex Miller, highlighted the complementary strengths and shared customer-centric approach of the two companies, emphasizing the potential for significant cost savings of about $250 million within three years post-deal closure. The acquisition of Zabka has been a longstanding interest for Couche-Tard, with executives considering the move for over 15 years before finalizing the offer.

The transaction is subject to regulatory approvals and is anticipated to be completed by December. The level of ownership Couche-Tard will secure in Zabka hinges on shareholder acceptance of the offer, with a threshold of 95% of total voting rights enabling Couche-Tard to delist Zabka from the Warsaw Stock Exchange. The integration process and operational structure of Zabka post-acquisition are still under consideration, with a focus on maximizing synergies and growth opportunities.

Analysts view the proposed acquisition as a strategic move that aligns with Couche-Tard’s long-term growth objectives. Irene Nattel, an analyst at RBC Capital Markets, commended the plan as both bold and measured, indicating that if successful, it could significantly advance Couche-Tard’s market position and financial performance.