Alimentation Couche-Tard has announced plans to acquire a controlling stake in Polish convenience retailer Żabka Group in a deal worth around 32.62 billion Polish złoty (£6.6 billion), marking the largest acquisition in the Canadian retailer's history.

The Canadian multinational convenience store operator will launch a voluntary tender offer through its subsidiary, Circle K Polska, to acquire all outstanding shares in Żabka at 32.00 Polish złoty (£6.35) per share.

The transaction already has the backing of Żabka's senior management and shareholders representing around 57 per cent of the retailer's shares, including investment firms CVC Capital Partners and Partners Group, which have agreed to tender their holdings.

Founded in 1998 and listed on the Warsaw Stock Exchange since October 2024, Żabka operates more than 13,000 convenience stores across Poland and Romania. The retailer serves around 4.3 million customers each day and has built a digital retail platform with approximately 11.7 million users across its digital channels, alongside a loyalty programme, data analytics capabilities, and foodservice and e-commerce businesses.

Couche-Tard said the acquisition would give it an established presence in Central and Eastern Europe while complementing its existing network of almost 400 Circle K service stations in Poland.

The retailer added that it plans to retain Żabka's management team, franchise model, brand, and local operating structure if the deal completes.

Couche-Tard currently operates around 17,300 stores in 27 countries including Canada, the United States, Sweden, Lithuania, Japan, and Indonesia.
Based on the companies' latest financial results, the combined business would generate annual revenues of around $83.9 billion, excluding synergies.

Couche-Tard said it expects the acquisition to create around $250 million in annual cost and revenue synergies within three years of completion.

The deal remains subject to shareholder acceptance and regulatory approvals, including merger clearance from the European Commission or Poland's competition authority, as well as foreign investment approval in Romania.

If Couche-Tard secures at least 95 per cent of Żabka's voting rights, it said it intends to acquire the remaining shares compulsorily and seek to delist the retailer from the Warsaw Stock Exchange.

"This is a transformational investment for Couche-Tard and an important milestone in our growth journey,” Alex Miller, president and chief executive of Couche-Tard, said. "Żabka has built one of Europe's most impressive convenience retail businesses, combining a powerful customer proposition with an entrepreneurial franchise model, a highly disciplined and proven operating platform, and a strong track record of growth."

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