Coles in talks with TPG to buy Greencross Pet Wellness, shares slide (updated)

Coles

01/07/2026 01:57

TPG is likely seeking A$4 billion for Greencross, says report
Coles says talks incomplete with no certainty of transaction
Coles shares close 4.2% lower 
Adds share moves in paragraph 3, analyst comments in 5-9
July 1 (Reuters) - Australian grocer Coles Group COL.AX said on Wednesday it is in talks to buy pet care firm Greencross Pet Wellness from U.S. private equity firm TPG.
TPG is likely aiming for about A$4 billion ($2.76 billion), the valuation it had sought for the pets and vets business in a potential float, the Australian Financial Review (AFR) had reported earlier in the day.
Shares of Australia's No. 2 grocer closed 4.2% lower at A$23.35 after falling as much as 7.8% earlier in the day.
The loss also came after Australia's competition watchdog blocked Coles from taking a new supermarket and liquor store site on lease in Kalgoorlie-Boulder, Western Australia.
The Australian Competition and Consumer Commission's decision reminds investors that even defensive supermarket names face real regulatory risks when they try to expand, making the potential Greencross talks more sensitive, said Hebe Chen, a market analyst at Vantage Markets.
Coles approached TPG almost a year ago, AFR reported, citing sources with knowledge of the matter. 
TPG declined to comment when contacted by Reuters.
Coles, which was spun off by Wesfarmers WES.AX in 2018 and is run by Leah Weckert, said it will only pursue the acquisition if it can generate strong shareholder returns and that talks remain incomplete with no certainty of a transaction proceeding.
"The market is now asking whether Coles can pursue new growth without adding more regulatory, execution and balance-sheet risks," Chen said.
          
($1 = 1.4512 Australian dollars)

 (Reporting by Shivangi Lahiri, Keshav Singh Chundawat, and Anjali Singh in Bengaluru; Additional reporting by Aamir Sheik Khalid; Editing by Subhranshu Sahu)
 ((Shivangi.Lahiri@thomsonreuters.com;))