Canadian company agrees to buy Polish Żabka store chain

Canadian company Alimentation Couche-Tard, which owns the Circle K gas station chain, has agreed to acquire Poland's Żabka Group – one of the largest store chains in Poland.

Circle K Polska will be the buyer. The company plans to announce a conditional tender offer for all of Żabka shares, and the parties have already entered into a cooperation agreement regarding the preparation of the transaction. The chain's value in the deal is estimated at approximately 32 billion zlotys. 

The largest shareholders of Żabka – Heket Topco and PG Investment Company – have committed to sell their stakes, which together represent about 47.6% of the shares. The company's executives have also agreed to sell the shares they hold. In total, the buyer has already received commitments to sell over 57% of Żabka shares. 

The deal is not yet completed. Circle K has to conduct a formal share buyback and obtain the necessary approvals from regulators. Until the transaction closes, Żabka will continue to operate normally.

Żabka has thousands of small stores in Poland and is developing a network in Romania. Its new potential owner Alimentation Couche-Tard operates Circle K stores and gas stations in many countries around the world.

Earlier, a stake in Żabka was planning to be acquired by Japanese holding Seven & i Holdings, which owns the 7-Eleven chain. However, at the end of July, the company abandoned the deal because the parties could not agree on the terms.

Based on materials from: Żabka Group, Business Insider Polska