Coles ends Greencross acquisition talks, shares rise
Coles Group Ltd (ASX:COL) announced that it has ceased discussions to acquire Greencross Pet Wellness, the pet‑care and veterinary business owned by private‑equity firm TPG Capital. The company did not disclose a reason for walking away from the transaction.
The announcement triggered a rally in Coles shares, which climbed nearly 5% on the day, reversing a decline of more than 4% that had occurred after the potential deal was first disclosed earlier in the month. The ticker showed a gain of 2.77% relative to the broader Australian staples sector.
Local media reported that TPG had been seeking a valuation of approximately A$4 billion for Greencross, a figure broadly consistent with the valuation targeted in a previously shelved initial public offering.
Coles stated that it will continue to assess strategic opportunities that complement its existing supermarket business and create shareholder value, while maintaining a disciplined approach to acquisitions.
No further details or timelines were provided.