Coles has turned its back on a mooted $4bn merger.
Coles has turned its back on a mooted $4bn merger that would have given it a foothold in one of Australia’s fastest growing industries.
In a surprise move, the supermarket giant has reneged on a $4bn deal to buy the owner of Petbarn, Greencross.
Coles has initially indicated its interest in bringing Greencross, which runs veterinary chains across the country alongside well-known pet retailer Petbarn, which boasts around 150 Aussie stores.
Petbarn won’t be a part of the Coles empire. Picture: Thomas McLean
However Coles has now decided to turn its back on any potential merger or acquisition of the pet businesses.
“Coles advises that it has ceased discussions with TPG Capital private equity group regarding the potential acquisition of Greencross Pet Wellness Company,” Coles announced in a statement.
“Coles applies a disciplined approach to acquisitions, and as one of Australia’s leading retailers, regularly assesses strategic opportunities that may complement its existing business.”
The supermarket retailer which has over 1862 stores across Australia, did not give a reason for the move.
But it appears Coles has decided to stay away from the pet industry in Australia, an industry which is worth an estimated $21.3bn annually and has grown 35 per cent since 2022.
Coles has operated its own pet care business before it made the decision to shut down Swaggle in March this year.
TPG will continue to own Petbarn. Picture: Rohan Kelly
And its initial interest in Petbarn was viewed as a counter to rival Woolworths’ purchase of a majority stake in Petstock in 2024 for $586m.
Coles and TPG had been in discussions re Greencross for about nine months before the deal fell apart.
“As one of Australia’s leading retailers, with a strong balance sheet and debt capacity, Coles regularly assesses strategic opportunities that may complement its existing business and create value for shareholders,” the supermarket had previously said in confirming the discussions.
“Coles will only pursue an acquisition where it is satisfied that the transaction is strategically compelling and capable of delivering attractive shareholder returns.”
TPG bought Greencross in 2019 for about $1 billion.