Montreal, QC – February 2, 2026 – MTY Food Group Inc. (TSX: MTY) shares declined 4% to C$56.20 on Monday as negotiations with potential acquirers Serruya Private Equity and Recipe Unlimited Corporation extend into a critical final week, with sources indicating discussions around a C$60 per share offer are expected to conclude within days. None of the parties involved (MTY Food Group, Serruya Private Equity, or Recipe Unlimited) have commented publicly on the transaction status.
The stock’s retreat from Friday’s close of C$58.50 reflects growing impatience among investors who had anticipated a weekend breakthrough following intense negotiations last week. Bids reportedly reached the C$60 per share level, valuing the Montreal-based restaurant franchisor at approximately C$2.4 billion, before the weekend, but the expected announcement failed to materialize.
Market Reaction to Delayed Announcement
Trading volume remained elevated at over 400,000 shares on Monday, though below the massive levels seen last week when acquisition speculation peaked. The widening gap between the current C$56.20 price and the reported C$60 offer (now approximately 6.3%) signals that investors are repricing the probability of deal completion amid the continued silence.
Despite the decline, MTY shares remain substantially higher than early January levels around C$38-40, delivering year-to-date returns of approximately 40% for shareholders who have held through the strategic review process.
Week Ahead Critical for Deal Outcome
Sources familiar with the negotiations indicated that this week represents a decisive period for the MTY Food Group acquisition. The parties are working to finalize remaining terms and conditions, with expectations that either a definitive agreement will be announced or the talks will extend further into February.
The delay from last week’s anticipated timeline doesn’t necessarily indicate problems, according to M&A experts. Complex transactions of this scale (involving multiple bidders, extensive due diligence, and detailed contract negotiations) routinely require more time than initial projections suggest.
Competing Bidders Drive Complexity
The involvement of both Serruya Private Equity and Recipe Unlimited Corporation adds layers of complexity to the process. Recipe Unlimited, as a strategic buyer operating major Canadian restaurant brands including Swiss Chalet and Harvey’s, would pursue operational synergies and market consolidation. Serruya Private Equity brings a financial buyer’s approach focused on operational improvements and eventual exit strategies.
The competitive dynamic between the two has reportedly driven the offer price to C$60 per share, representing a 36% premium over the C$44 price MTY traded at before acquisition speculation intensified. However, price agreement alone doesn’t guarantee a completed transaction—numerous other terms require alignment before definitive agreements can be signed.
Regulatory Path Awaits
Once announced, any MTY Food Group acquisition would face Competition Bureau review, with additional Investment Canada Act scrutiny possible if a foreign buyer prevails. These regulatory processes typically extend deal timelines by 3-6 months from announcement to closing, meaning shareholders face an extended waiting period even after an agreement is reached.
A Recipe Unlimited transaction would likely attract closer competition examination given the combination of two major Canadian restaurant operators, potentially requiring divestitures or other remedies.
Dividend Provides Income Cushion
While shareholders await transaction clarity, MTY’s recently enhanced quarterly dividend of C$0.37 per share (increased 12% in late January) provides ongoing income. At current prices, the dividend yields approximately 2.6% annually, offering some compensation for the uncertainty and waiting period.
What Comes Next
Market participants will watch closely for any announcements this week from MTY Food Group, Serruya Private Equity, or Recipe Unlimited that would clarify the transaction status. Until official communication emerges, shareholders face continued uncertainty about whether negotiations will successfully conclude at C$60 per share or if alternative outcomes will develop.
The stock’s Monday performance suggests investors are taking a more cautious stance, but with negotiations expected to reach resolution this week, clarity should emerge soon on whether the MTY Food Group acquisition will proceed as reported.
