Australian retail group Woolworths has confirmed its interest in participating in the sale of rival Coles Group.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Woolworths said it is interested in the Officeworks and Target divisions of Coles but refused to be drawn on whether it would form a consortium to bid for the whole of the company.
A Woolworths spokesperson confirmed the group’s interest to just-food today (13 April) but declined to comment further. The company could reveal more about its intentions when it publishes its third-quarter results on Tuesday.
Woolworths would be precluded from buying on Coles in its entirety on competition grounds. However, reports in Australia have claimed Woolworths could team up with groceries wholesaler Metcash, which would acquire Coles’ supermarket and liquor divisions.
The Woolworths spokesperson declined to comment, while officials at Metcash could not be reached as just-food went to press.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe race to buy Coles has heated up this week with two consortiums officially registering bids for the company. A consortium led by private equity group KKR said this week that it would at least match an earlier offer from a group headed by conglomerate Wesfarmers.
The Wesfarmers-group tabled an offer for Coles worth A$16.57 (US$13.78) a share or around A$19.7bn. At the close of trading today, Coles’ share price had reached A$17.46 as speculation over Woolworths’ interest mounted.
A spokesman for Wesfarmers refused to be drawn on whether the company’s consortium could be priced out of any auction for Coles due to the spike in the share price.
“We’re just not concerned with the share price or any potential interest from Woolworths or anyone else,” the Wesfarmers spokesman told just-food. “We’re just trying to settle the confidentiality agreement with Coles and start doing due diligence.”
Coles should open its books to the two consortiums nest week, the Wesfarmers spokesman added.
Coles officials could not be reached for comment as just-food went to press.
