- Caltex Australia (CTX) has announced Alimentation Couche-Tard (ATD) has walked away from the $8.8 billion takeover offer
- ATD has dropped its offer due to the current uncertainty from the pandemic
- There is no certainty that ATD will make another offer once things go back to normal
- The company also showed a fall in refiner margins at its Lytton facility, dropping from US$8.67 per barrel in March 2019 to US$4.62 last month
- The plant lost $18 million in three months to March, down from $5 million profit the year before
- Caltex Australia is down 7.81 per cent at market close, trading for $21.72 per share
Caltex Australia (CTX) has announced Alimentation Couche-Tard (ATD) has walked away from the $8.8 billion takeover offer due to the current uncertainty from COVID-19.
The Canadian-listed company substantially completed its due diligence on Caltex after putting in the offer to purchase the company last year.
There is no certainty that ATD will make another offer once things go back to normal.
Caltex Chairman Steven Gregg says the Board has been carefully assessing all proposal it has received.
“The Caltex and ATD teams have worked together constructively during the engagement period despite the challenges from COVID-19,” he said.
“We remain confident in the strength of Caltex as an independent business, and
should we receive an approach in the future would be willing to consider it on its merits,” he added.
Lytton Refinery
The company also showed a fall in refiner margins at its Lytton facility, dropping from US$8.67 per barrel in March 2019 to US$4.62 last month.
The plant lost $18 million in three months to March, down from $5 million in profit the year before.
Caltex has decided to temporarily shut the Brisbane refinery from next month for an extended maintenance closure and will reopen once conditions have improved.
“Caltex enters the current period of COVID-19 uncertainty with a strong balance sheet and we will continue to protect our cashflows and to position ourselves to take advantage of opportunities that will arise when markets recover,” CEO Matthew Halliday said.
Caltex Australia is down 7.81 per cent at market close, trading for $21.72 per share.