Alimentation Couche-Tard Inc., based in Laval, Quebec, has set its sights on acquiring Zabka Group, a Polish convenience store operator, following unsuccessful attempts to purchase a French grocer and a major global convenience store chain. The proposed takeover involves a bid exceeding $12 billion for a majority stake in Zabka, valuing each share at 32 Polish zloty or around $11.90 Canadian dollars.

If the deal is finalized, it will be Couche-Tard’s largest acquisition to date, aligning with its strategic goal of significantly expanding its business footprint. Zabka, with over 13,000 stores in Poland and Romania, shares similarities with Couche-Tard in terms of product offerings, including a wide range of beverages, snacks, and an increasing focus on hot food items.

While Zabka emphasizes quick-serve meals and some autonomous locations, Couche-Tard’s forte lies in beverages and fuel sales, with a substantial number of its stores featuring gas stations. Couche-Tard’s CEO, Alex Miller, highlighted the synergies between the two companies, emphasizing a customer-centric approach and the potential for significant cost savings totaling approximately $250 million US within three years post-acquisition.

The acquisition of Zabka by Couche-Tard has been a long-time consideration, with previous attempts at other high-profile acquisitions like Carrefour SA and Seven & i Holdings. The support from Zabka’s key stakeholders, including incoming CEO Tomasz Blicharski and major investors, underscores the positive reception of the deal.

Regulatory approvals are pending, with the transaction expected to be concluded by December. The final extent of Couche-Tard’s ownership in Zabka will depend on shareholder responses to the offer. There are considerations regarding Zabka’s future status post-acquisition, with possibilities ranging from full integration into Couche-Tard to maintaining a public listing on the Polish stock exchange.

Analysts view this strategic move by Couche-Tard favorably, anticipating substantial progress in its growth trajectory. Irene Nattel of RBC Capital Markets commended the acquisition plan as both bold and well-calculated, foreseeing significant advancements in Couche-Tard’s long-term objectives.