Coles ends $4 billion talks to buy Greencross Pet Wellness from private equity owner TPG Capital

The shares of Coles surged after the supermarket giant announced that it was walking away from talks to buy pet care company Greencross Pet Wellness.

Coles on July 1 said it was in discussions with Greencross’ private equity owner about potentially buying it, adding that due diligence had begun on the company that operates brands such as Petbarn.

“(Coles) has ceased discussions with TPG Capital private equity group regarding the potential acquisition of Greencross Pet Wellness Company,” it said in a statement on Friday.

The shares rose by 4.4 per cent in morning trading on Friday to $23.53, after reaching as high as $23.68 earlier. Coles’ shares fell when news of its talks to buy Greencross was announced more than two weeks ago.

Greencross operates 247 Petbarn stores across Australia in addition to over 140 vet clinics and almost 30 emergency hospitals.

Coles previously said that it regularly assessed “strategic opportunities” for businesses that “complement” its existing operations. The Greencross deal was reportedly worth about $4 billion.

“Discussions remain incomplete and there is no certainty that a transaction will proceed.”

The company didn’t say why the talks with Greencross’ owner, TPG, had ended, except that the matter was now closed and due diligence had ended.

The retailer has left the door open to other opportunities.

“Coles will continue to keep the market informed in accordance with its continuous disclosure obligations.”

Coles previously owned pet care company Swaggle before it shuttered the business in March.

Rival Woolworths bought a majority stake in Petstock for over $430 million a few years ago.