Tesco, the UK’s largest retailer, is keeping mum on suggestions that it could team up with Woolworths, Australia’s largest retailer, in a bid to buy Coles Group.
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It is believed that, were such an alliance to be made, Woolworths would take Coles’ non-food businesses while Tesco would acquire the group’s supermarket operations.
While Woolworths has registered its interest in Officeworks and Target, it has not confirmed any intention to join forces with private equity or trade partners in order to buy the entire Coles business.
When approached by just-food today (27 April) Tesco declined to comment on the speculation. However, a spokesperson for the group said: “International expansion is viewed as central to our long-term growth, and as such we closely monitor major developments and emerging opportunities in markets throughout the world.”
Coles, Australia’s number two retailer, put itself on the block in February after posting a set of disappointing results and failing to buck the downward trend in its profitability.
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By GlobalDataThe group has indicated that it will consider proposals that would see either a total sale or a break-up of the company’s three business units: supermarkets, Target and Officeworks. Coles is also mulling the possibility of selling a substantial stake in its supermarket operations and remaining listed.
To date, two consortiums have tabled bids for Coles. One offer has come from a syndicate led by private equity group KKR and another from a consortium headed by local conglomerate Wesfarmers.
