|Bid||34.12 x 0|
|Ask||34.16 x 0|
|Day's range||33.97 - 34.39|
|52-week range||20.52 - 35.96|
|Beta (5Y monthly)||0.53|
|PE ratio (TTM)||26.51|
|Earnings date||25 Feb 2020|
|Forward dividend & yield||0.64 (1.86%)|
|Ex-dividend date||09 Sep 2019|
|1y target est||30.75|
The fuel retailer's full-year result has been weighed down by weak retail margins, soft economic conditions and unplanned outages at its Lytton refinery.
(Bloomberg Opinion) -- Investors in the retail sector can’t get their fill of gas stations. Seven & i Holdings Co., the Japanese company that controls 7-Eleven, is in exclusive talks to acquire Marathon Petroleum Corp.’s Speedway gas stations for about $22 billion, people familiar with the matter told Scott Deveau, Kiel Porter and Manuel Baigorri of Bloomberg News.That’s not the only deal out there. EG Group, a closely held U.K. forecourts operator that had also shown an interest in Speedway, this week offered A$3.9 billion ($2.6 billion) in cash for the gas stations owned by Caltex Australia Ltd.Alimentation Couche-Tard Inc. is also bidding for Caltex’s entire business, including its refinery and fuel distribution unit as well as the retail gas-station network. Couche-Tard, Seven & i, and Berkshire Hathaway Inc. went on a similar spree for U.S. fuel retailers, truck stops and convenience stores in 2017.The argument for these deals is quite straightforward. Grocery retail for several decades has been shifting away from the stereotype of large nuclear families doing weekly shopping trips in big-box supermarkets, toward individuals, working parents and retirees picking up a few things from a local convenience store several times a week.If you’re looking to expand into convenience stores, gas stations are a target-rich environment — scattered through urban areas and along major highways, and ripe for upgrading beyond their traditional fare of basic fuel for vehicles and their drivers. In the meantime, the constant need to fill up gas tanks provides a reliable stream of cash, although one that’s highly leveraged to the price of oil.Seven & i hopes to echo the revival of its domestic business by offering a wider range of products and fresh food to customers. EG Group, which has grown from a single U.K. gas station in 2001 to encompass around 5,900 sites on three continents, makes a similar argument. It hopes to eventually make about 70% of its profits from non-fuel retail, up from around 50% currently, by bringing recognized retail brands into its forecourts to create mini-malls.There’s just one problem with this bold vision. Fuel retail is on the verge of a major structural revolution — and the result isn’t likely to be a pretty one for gas stations.The most obvious bear scenario would come if automakers’ rush to electrify their product ranges succeeds in bringing about the decline of the internal combustion engine. Around 10 million electric vehicles will be on the road by the end of this year and there’s already nearly a million EV charging stations, according to BloombergNEF.While that still represents a small share of the car market, the situation should change rapidly in the second half of this decade, as the costs of electric vehicles fall definitively below those of conventional ones and government phase-out targets in the 2030s start to loom. On a global basis, the International Energy Agency expects gasoline demand to peak in the late 2020s. The sorts of developed markets where the current gas station M&A frenzy is playing out are unlikely to be the most resilient to that shift.Even if gas stations invest in their own charging infrastructure — a relatively costly activity, and one that would commit them to purchasing from third-party utilities rather than the vertically integrated refining businesses they’re often bundled up with — they risk losing their traditional monopoly on fuel supply to chargers in homes and workplaces. That threatens footfall, a key metric for retailers who depend on high volumes of customer traffic to make the most of their store assets.Things may be somewhat better if the electric-car revolution fails to catch light. Even then, though, fuel-efficiency mandates mean fewer trips to buy gas, leading to a similar effect on footfall. Combined with a shift toward more online delivery, the effect could be dismal: By 2035, more than a quarter of gas stations will be unable to make economic profits in even the least electrified scenario, according to a report last year by Boston Consulting Group. All of this would be fine if convenience stores were going to be so profitable over the next few years that they could afford to make a quick buck and transform themselves before they’re overwhelmed by change.There’s little sign of that, though. EG Group made just 16 million euros ($17.3 million) of net income on an underlying basis in its latest results, despite more than 12 billion euros of revenue (on a statutory basis, there was a 138 million euro net loss). Net income margins at Seven & i’s U.S. unit tend to hover around 3%, and returns on equity are an unspectacular 8% or 9%. Viva Energy Group Ltd., a competitor to Caltex which operates Shell-branded forecourts in Australia, has lost about 25% of its market capitalization since an initial public offering in 2018.The days of the conventional gas station are numbered. Anyone who wants to make money from transforming them had better have their foot firmly pressed on the accelerator.To contact the author of this story: David Fickling at email@example.comTo contact the editor responsible for this story: Rachel Rosenthal at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Britain's EG Group has made a $3.9 billion offer for Caltex Australia's retail business and a stake in a newly listed company, Ampol.
(Bloomberg) -- EG Group, the U.K. company led by Mohsin and Zuber Issa, joined the bidding war for Caltex Australia Ltd., seeking to beat a rival offer by Canada’s Alimentation Couche-Tard Inc.The company said it would pay A$3.9 billion ($2.6 billion) in cash for Caltex’s retail outlets and is also offering shareholders a stake in a new listed entity called Ampol that will house the fuel and infrastructure business. Caltex Australia said its board was considering the proposal.The Australian fuel retailer, which has a network of about 2,000 sites, is also considering a sweetened A$35.25-per-share cash offer from convenience-store giant Couche-Tard that values the company at A$8.8 billion. That proposal offers Caltex shareholders more certainty as the total value of EG Group’s offer hasn’t been disclosed.The closely held EG Group is offering Caltex shareholders A$15.62 per share cash and one share in Ampol. The non-binding offer is subject to several conditions including access to Caltex’s books.Shares in Sydney-based Caltex rose 0.2% to A$34.56 at 11.06 a.m. local time.EG Group was formed in 2016 when Euro Garages, run by the Issas, merged with TDR’s European Forecourt Retail Group.U.K. Gas-Station Billionaires Weigh Biggest-Ever Deal in CaltexThe Issa brothers have built one of the world’s largest independent gas-station chains through a series of debt-fueled purchases. The company last year completed the A$1.73 billion purchase of 540 Australian fuel outlets from Woolworths Group Ltd. From a single gas station purchased in 2001, it is now a global giant with about 5,000 fuel stations and convenience stores across Europe, North America and Australia.To contact the reporter on this story: Edward Johnson in Sydney at email@example.comTo contact the editors responsible for this story: Edward Johnson at firstname.lastname@example.org, Angus WhitleyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The S&P/ASX 200 (Index:^AXJO)(ASX:XJO) and ALL ORDINARIES (Index:^AXAO) (ASX:XAO) ended down on Monday, here are 8 ASX shares you missed.The post ALL ORDINARIES finishes lower Monday: 8 ASX shares you missed appeared first on Motley Fool Australia.
The Brambles Limited (ASX:BXB) share price and the National Storage REIT (ASX:NSR) share price are two of four charging higher on Monday...The post Why Brambles, Caltex, National Storage, & Regis shares are charging higher today appeared first on Motley Fool Australia.
The Caltex Australia Limited (ASX:CTX) share price could be on the rise on Monday after takeover talks with Alimentation Couche-Tard advanced...The post Caltex share price on watch after takeover talks advance appeared first on Motley Fool Australia.
(Bloomberg) -- Canadian convenience-store giant Alimentation Couche-Tard Inc. raised its takeover offer for Caltex Australia Ltd. to A$8.8 billion ($5.9 billion) as other parties including EG Group circle the Australian fuel retailer.Sweetening its bid for a second time, Couche-Tard is now offering A$35.25 per share in cash for Caltex, after earlier offers of A$34.50 and A$32 were rejected as too low, according to a statement Thursday. The latest approach is 7% higher than Wednesday’s closing price.Caltex shares rose 2.4% to A$33.73 at the Thursday close in Sydney.Caltex, which had granted the Canadian suitor some access to its books, said it was considering the revised proposal. In a separate statement, Couche-Tard said its latest bid is the company’s “best and final” price, in the absence of a competing offer.The Australian fuel retailer, which has a network of about 2,000 sites, has confirmed it has been approached by a number of parties including EG Group, the company led by Britain’s billionaire Issa brothers.EG Group is in talks to team up with an arm of Macquarie Group Ltd. in its attempt to acquire Caltex, according to people familiar with the matter. 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.Couche-Tard’s offer is subject to various conditions and there’s no certainty it will result in a deal, Caltex said.(Adds that offer is Couche-Tard’s best and final bid in the fourth paragraph.)To contact the reporter on this story: Edward Johnson in Sydney at email@example.comTo contact the editors responsible for this story: Edward Johnson at firstname.lastname@example.org, Angus Whitley, Peter VercoeFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Caltex Australia has received an improved proposal from Alimentation Couche-Tard to acquire all its shares at an indicative price of $35.25 cash per share.
The Caltex Australia Limited (ASX: CTX) share price will be on watch this morning following the release of two separate market announcements.The post Why the Caltex share price is on watch today appeared first on Motley Fool Australia.
(Bloomberg) -- 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 Caltex, EG Group and Macquarie declined to 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.(Updates Caltex Australia’s response in fifth paragraph.)\--With assistance from Gillian Tan.To contact the reporters on this story: Harry Brumpton in Sydney at email@example.com;Dinesh Nair in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ben Scent at email@example.com;Fion Li at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The All Ordinaries (ASX:XAO) is up after we learned from the ABS about Australia’s December 2019 inflation rate. The post Inflation on track, ASX shares rise appeared first on Motley Fool Australia.
The S&P/ASX 200 (Index:^AXJO)(ASX:XJO) and ALL ORDINARIES (Index:^AXAO) (ASX:XAO) finished up on Thursday, here are 8 ASX shares you missed. The post ALL ORDINARIES finishes higher Thursday: 8 ASX shares you missed appeared first on Motley Fool Australia.
The Caltex Australia Limited (ASX:CTX) share price could be on the move today after providing updates on its fourth quarter performance and takeover approach...The post Caltex share price on watch after fourth quarter and takeover updates appeared first on Motley Fool Australia.
Caltex Australia Limited (ASX:CTX), Oil Search Limited (ASX:OSH), and Saracen Mineral Holdings Limited (ASX:SAR) shares will be on watch on the ASX 200 on Wednesday...The post 5 things to watch on the ASX 200 on Wednesday appeared first on Motley Fool Australia.
The S&P/ASX 200 (Index:^AXJO)(ASX:XJO) and ALL ORDINARIES (Index:^AXAO) (ASX:XAO) finished down on Wednesday, here are 8 ASX shares you missed.The post ALL ORDINARIES finishes lower Wednesday: 8 ASX shares you missed appeared first on Motley Fool Australia.
The Caltex Australia Limited (ASX:CTX) share price is pushing higher on Wednesday after responding to takeover speculation...The post Caltex share price higher after responding to takeover speculation appeared first on Motley Fool Australia.
Caltex Australia Limited (ASX:CTX), Commonwealth Bank of Australia (ASX:CBA), and Domino's Pizza Enterprises Ltd (ASX:DMP) shares are making waves on the ASX 200 on Tuesday...The post ASX 200 lunch update: Caltex, CBA, & Domino's higher appeared first on Motley Fool Australia.
The Caltex Australia Limited (ASX:CTX) share price could be on the move today after reports claimed that a bidding war was brewing...The post Caltex share price on watch as takeover rumours swirl appeared first on Motley Fool Australia.
Caltex Australia Limited (ASX:CTX), Domino's Pizza Enterprises Ltd (ASX:DMP), and Evolution Mining Ltd (ASX:EVN) shares will be on watch on the ASX 200 on Tuesday...The post 5 things to watch on the ASX 200 on Tuesday appeared first on Motley Fool Australia.
These were 4 of the biggest news items from the ASX 200 (ASX:XJO) this week. Read how this affected these individual companies.The post 4 of the biggest news pieces from the ASX200 this week appeared first on Motley Fool Australia.