Couche-Tard bids 7.5 billion euros for Poland's Zabka
Canada's Alimentation Couche-Tard has offered €7.56 billion for Europe's largest convenience store chain, a deal that would end Żabka's two-year run as a public company and mark the Canadian firm's biggest ever acquisition.
Alimentation Couche-Tard, the Canadian operator of Circle K petrol stations, has launched a €7.56 billion takeover bid for Poland’s Żabka Group. The offer of 32 zloty per share values the Polish retailer at 32.6 billion zloty. If completed, the transaction would be the largest in Couche-Tard’s history, adding Europe’s largest convenience store network to a portfolio that already spans 17,300 stores across 27 countries.
The deal has substantial backing from Żabka’s top investors. CVC Capital Partners, holding a 37.6% stake through an entity called Heket, and PG Investment Company, which owns 10%, have both agreed to sell. A group of major individual shareholders, including members of the company’s management and former executives who together control 9.6% of the stock, will also tender their shares. These commitments give the Canadian buyer an initial lock on at least 57.2% of the company. Żabka shares climbed roughly 8% to 31.60 zloty on the news.
For the Warsaw Stock Exchange, the acquisition would mean the abrupt departure of a flagship listing. Żabka debuted on the exchange only in 2024 in one of Europe’s largest public offerings that year, raising its valuation to around €5 billion. A successful takeover at the current premium would effectively delist the business just two years after that highly publicised float.
Despite the change in ownership, the Canadian buyer intends to keep Żabka operating as a standalone brand. The Polish chain will retain its current management team. Alex Miller, Alimentation Couche-Tard’s CEO, said the company is “committed to supporting the continued growth of the Żabka business while drawing from its strengths in areas such as food, digital engagement, customer loyalty, private brand, supply chain, logistics and innovation.” Management and former executives participating in the sale have also agreed to reinvest part of their proceeds into Couche-Tard shares, aligning their interests with the new parent company.
Żabka’s appeal likely rests on its franchised model and digital capabilities, alongside its recent international push. The chain dominates the Polish market through about 13,000 locations run by roughly 11,000 franchisees. It has also expanded into Romania, where its Froo brand reached 100 outlets last year. This regional growth trajectory may have been a key factor in attracting outside interest, particularly after Japanese retailer Seven & i Holdings withdrew from its own advanced talks to invest in Żabka late last month.
The tender offer, intermediated by Ipopema Securities, is expected to open for subscriptions around 26 August. This timeline depends on a review of the offer document by the Polish Financial Supervision Authority. The companies anticipate closing the transaction before the end of the year.
