Coles abandons $4billion bid for Petbarn owner as investors breathe sigh of relief

By KYLIE STEVENS, SENIOR BREAKING NEWS REPORTER, AUSTRALIA Published: 08:31, 17 July 2026 | Updated: 08:44, 17 July 2026 Coles has abruptly abandoned plans to buy Australia's largest pet care company after negotiations over the proposed $4billion deal broke down. The supermarket giant had been set to snap up Greencross Pet Wellness Company, the owner of Petbarn, City Farmers and Greencross Vets. But the plans have collapsed after Coles told investors on Friday it had ceased discussions with TPG Capital, the private equity group that owns Greencross. 'Coles advises that it has ceased discussions with TPG Capital private equity group regarding the potential acquisition of Greencross Pet Wellness Company,' a statement to the ASX read. 'Coles applies a disciplined approach to acquisitions, and as one of Australia's leading retailers, regularly assesses strategic opportunities that may complement its existing business.' No further details were provided when the Daily Mail contacted Coles for comment.  Coles shares jumped almost five per cent following the announcement, with analysts suggesting investor feedback may have contributed to the collapse of negotiations.  'We had several concerns with the acquisition that were shared by investors from our extensive conversations in recent days,' Citi analyst Adrian Lemme told the Australian Financial Review. Coles has ditched plans to acquire Greencross Pet Wellness Company in a $4 billion deal (file image)  The acquisition would have been the first major deal for Coles chief executive Leah Weckert 'We've long argued in favour of capital management to capitalise on balance sheet strength.  'Perhaps Coles will pursue capital management in due course.' Wilson Asset Management analyst Hailey Kim said Coles had shown discipline by walking away from the deal.  'There are still meaningful opportunities to create value within the core supermarket business, where capital can be deployed with greater certainty and lower execution risk,' she said. The deal was first flagged almost a year ago when Coles approached TPG Capital. However, the supermarket giant confirmed a fortnight ago that discussions remained 'incomplete' and that there was 'no certainty that a transaction will proceed'.  'As one of Australia's leading retailers, with a strong balance sheet and debt capacity, Coles regularly assesses strategic opportunities that may complement its existing business and create value for shareholders,' a spokesman said at the time. 'Coles will only pursue an acquisition where it is satisfied that the transaction is strategically compelling and capable of delivering attractive shareholder returns.' TPG Capital will now pursue alternative exit options for Greencross and its Petbarn stores The acquisition would have been the first major deal for Coles chief executive Leah Weckert since taking over the top job three years ago. Coles had already ventured into the pet care market through its online platform, Swaggle, which shut down in March after just two years in operation. The company cited a shift in market demand and customer needs as the cause. Woolworths bought a 55 per cent stake in Petspiration Group, the owner of Petstock, for $586million in 2024. Bunnings also expanded its presence in the pet care market in 2023, adding almost 1,000 pet products to its shelves. TPG Capital will now pursue alternative exit options for Greencross, which it purchased in 2019 for $675million. Greencross operates 267 Petbarn stores, 160 vet clinics and 24 animal hospitals.