Alimentation Couche-Tard Launches $8.7 Billion Bid for Żabka

Canadian retailer Alimentation Couche-Tard Inc. has launched a voluntary tender offer to acquire all shares of Żabka, the largest convenience store chain in Poland. The offer of 32 zloty per share values the company between $8.7 billion and $8.8 billion, marking the largest buyout ever for a company listed on the Warsaw Stock Exchange and the second-largest retail acquisition of the year.

The subscription period for the offer runs from August 27 through September 25, with settlement expected on September 30. Major shareholders CVC Capital Partners and Partners Group have already agreed to tender their shares. Couche-Tard intends to maintain the existing workforce and debt structure of Żabka, though it may delist the company if it secures at least 95% ownership.

Chief Executive Officer Sonny Boy Williamson II expressed confidence in completing the transaction, despite anticipating shareholder pressure to increase the bid. The acquisition is part of a strategy to expand the company's European footprint, with expectations that the deal will generate $250 million in annual cost benefits within three years.