The operator of well-known retail locations worldwide, including “Circle K” gas stations operating in Poland, announced that it has reached an agreement with the management of “Żabka” for the takeover of the entire group.
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The deal would include a network of more than 13,000 convenience stores in Poland and Romania.
The Canadian company does not hide that this transaction would become the largest acquisition in the entire history of “Couche-Tard”.
The planned deal value is about 32.62 billion zlotys – equivalent to approximately 7.57 billion euros (8.7 billion US dollars).
This news appeared just a few days after the Japanese retail giant “Seven & i Holdings” withdrew from negotiations to acquire a stake in “Żabka”, stating that it failed to reach an agreement favorable to both parties.
15min reported that “Seven & i Holdings” negotiated with “Żabka Group” for an investment valued, according to Japanese media, at several hundred billion yen – which is several billion euros.
“Alimentation Couche-Tard” estimates that by the third year of deal implementation, it will achieve about 217.5 million euros (250 million US dollars) in synergy, not just direct “positive revenue return”.
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Canadians promise to maintain the well-known brand
The buyer from Canada describes “Żabka” as one of the most advanced small retail platforms in Europe, with the best-in-class loyalty program and a rapidly growing portfolio of digital services, e-commerce, and public catering business.
This acquisition will allow the Canadians to significantly strengthen their positions in Central and Eastern Europe and will complement the already existing network of nearly 400 “Circle K” gas stations in Poland.
The company promises to maintain the highly recognizable “Żabka” brand, local expertise, and the existing management structure.
The deal will need to be approved by regulators in Poland, the European Union, and other responsible authorities.
However, “Alimentation Couche-Tard” and “Żabka” expect that all formalities will be successfully completed by December.
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