Canadian Tire has extended its offer period to acquire Forzani Group’s outstanding shares while regulators take more time to study the deal.
Both companies were informed by the Competition Bureau on Thursday that it required additional information to complete its review of the proposed transaction, Canadian Tire said in a statement. Under the Competition Act, the period during which the parties may not complete the transaction has been extended until 30 days after providing the bureau with the additional information it has requested.
Other that the deadline extension, all other terms of Canadian Tire’s offer of $26.50 in cash for each outstanding class A common share of Forzani remains the same. The bid amounted to a 50 percent premium to Forzani’s stock price prior to the offer.
“Given the scope and complexity of the parties businesses, the issuance of a request for additional information is not unusual,” Canadian Tire said.
Forzani owns some 500 stores under various banners, including Sport Chek and Athletes World, as well as specialty stores like Nevada Bob’s Golf and Hockey Experts.
Completion of the transaction would mean Canadian Tire would own the No. 1 and No. 2 sporting goods retail chains in the country.
