- Coles nearing a $4 billion transaction
- A supermarket planning to acquire a pet care business
Coles plans to acquire Australia's largest pet care business through a transaction valued at almost $4 billion.
A major supermarket chain is nearing an agreement to acquire Greencross Pet Wellness Company, which owns Petbarn, City Farmers, and Greencross Vets.
It operates 267 retail outlets, 160 veterinary clinics, and 24 animal hospitals.
"As a top retailer in Australia, boasting a solid financial position and borrowing capability, Coles consistently reviews strategic options that could enhance its current operations and benefit its investors," stated a spokesperson from Coles.
'Coles will only consider an acquisition if it believes the deal is strategically beneficial and has the potential to generate strong returns for shareholders.'
Conversations are still not finalized, and it remains unclear whether a deal will move forward.
The agreement was initially brought to attention nearly a year back when Coles contacted TPG, the parent company of Greencross, as reported by The Australian Financial Review, with TPG reportedly aiming for around $4 billion.
Should it proceed, this will mark the company's initial significant step beyond the food and beverage industry, as well as the CEO Leah Weckert's foremost substantial achievement within the organization since her arrival three years prior.
Recent developments follow the ACCC blocking Coles' attempt to purchase a supermarket and alcohol store in Kalgoorlie, WA, this week.
The Daily Mail reports that Coles is the second-biggest grocery store network in Australia, featuring 860 outlets across the country, including one located in Kalgoorlie.
Coles additionally manages three distinct networks of alcohol retail outlets across the country.
The ACCC's deputy chairperson, Mick Keogh, stated that the regulatory body was against the takeover as it might significantly reduce competition in the regional mining community and increase Coles' influence within the local supermarket industry.
He stated, 'Independent grocery stores serve as a significant competitive limitation for the large supermarket corporations.'" Or: "According to him, independent convenience stores act as a key factor limiting the dominance of big supermarket companies." Or: "They mentioned, 'Small-scale supermarkets play a crucial role in keeping the larger chain retailers in check.'" Or: "'Independent grocers represent a vital challenge to the bigger supermarket brands,' he noted.
They offer customers genuine options, rivalry in terms of service, quality, and variety, as well as pricing competition for certain items.
We discovered that although a new Coles supermarket could provide advantages for certain customers, there is a genuine possibility that the purchase might result in the departure of a strong independent rival, with its resources exiting the marketplace.
He further mentioned that there were limited chances of a new player joining the market soon enough to compensate for the reduction in competition that might arise from the agreement.
"Having evaluated all the information available to us, we believe there is a genuine chance that Coles' planned purchase could significantly reduce competition in Kalgoorlie over time, ultimately harming customers," he stated.
The Daily Mail has reached out to Coles for their response.
It’s not the first instance where a major supermarket chain has aimed to enter the pet market, as Woolworths acquired a 55% ownership in Petspiration Group, which owns Petstock, for $586 million in 2024.
In 2023, Bunnings further increased its involvement in the pet care sector by introducing nearly 1,000 new pet-related items onto its inventory.
Coles had previously entered the pet care industry via its Swaggle subsidiary, which was shut down in March.
More to come
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