Australian supermarket group Coles has confirmed it is in talks to acquire Greencross Pet Wellness from US private equity firm TPG, according to a report by Reuters.
TPG is reportedly seeking around AUD4bn ($2.76bn) for the pets and veterinary care business, matching the valuation it had targeted for a potential listing, according to the Australian Financial Review.
Coles said discussions remain incomplete and there is no certainty that a transaction will proceed. The company said it would only pursue the acquisition if it could deliver strong returns for shareholders.
Shares in Coles closed 4.2% lower at AUD23.35 on Wednesday, after falling as much as 7.8% earlier in the session. The decline also followed a decision by Australia’s competition regulator to block Coles from leasing a new supermarket and liquor store site in Western Australia.
