UK’s EG Group in talks to team up with Macquarie for Caltex Australia bid

The holley dollar is the global symbol of Macquarie Group and was Australia’s first official currency.

The U.K.’s EG Group is in talks to team up with Macquarie Group Ltd. in its attempt to acquire Caltex Australia Ltd., people familiar with the matter said.

EG Group is in discussions with an arm of Macquarie to partner on the potential deal, according to the people, who asked not to be identified because the information is private. If their bid is successful, EG Group would keep Caltex’s main retail business, while Macquarie would take on its refinery unit and some infrastructure assets, the people said.

Caltex shares rose as much as 1.1% on Wednesday in Sydney, giving it a market value of about A$8.3 billion ($5.6 billion). EG Group, which is one of the world’s largest independent gas station and convenience store chains, has been working with financial advisers as it evaluates making an offer for the company, the people said.

Bringing in a partner could help boost EG Group’s chances as it competes with Canadian convenience giant Alimentation Couche-Tard Inc., which offered to take over Caltex for A$8.6 billion last year. While Caltex rejected the bid, Couche-Tard was given access to select non-public information to entice it to sweeten its offer.

No firm agreements have been reached, and EG Group could opt to team up with another partner, the people said. Representatives for EG Group and Macquarie declined to comment, while Caltex didn’t immediately respond to requests for comment.

EG Group, which is controlled by British billionaire brothers Mohsin and Zuber Issa, has expanded rapidly through acquisitions over the past few years. It’s turned into a global giant with about 5,000 fuel station and convenience store sites across Europe, North America and Australia, according to its website.

For Caltex Australia, fuels and infrastructure business accounted for about 65% of its earnings before interest and tax in 2018, according to its annual report. The remainder came from its convenience retail business.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.