Australia’s largest retailer Woolworths is reportedly in talks with private equity group KKR to join forces and buy Coles Group.
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The consortium of private equity investors led by KKR is one of two investment syndicates to have officially tabled bids for Coles. Meanwhile, Woolworths has signalled its interest in Coles’ Officeworks and Target businesses.
According to a Dow Jones report citing people close to the situation, Woolworths and KKR have been in ongoing talks over the possibility of a joint bid.
KKR and Coles have been locked in discussions over the conditions of due diligence. The main sticking point is believed to be Coles’ desire for KKR to formalise any partnership with Woolworths before it opens its books.
Rumours are also circulating that Woolworths is in negotiations with Tesco over a potential joint bid. Tesco, however, remain silent on whether it is indeed interested in Coles.
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By GlobalDataCompetition is intense for Coles’ businesses, with Australian conglomerate Wesfarmers also offering A$19.7bn ($16.4bn) for Coles in partnership with Australia’s Macquarie Bank and private equity firms Pacific Equity Partners and Permira.
