That Was Quick - Tesco Out of Coles Bid

As reported by Kamcity:

AUSTRALIA: Tesco Said To Be Backing Off From Coles War
Tesco has decided not to try and bid for the Coles Group, according to Reuters, citing a source familiar with the situation. Tesco’s withdrawal of interest will leave the battle for Australia’s second-largest retailer open to conglomerate Wesfarmers Ltd., and a consortium including private equity giant KKR. Tesco had reportedly appointed Merrill Lynch to look into a possible Coles offer, but has now decided it was not a sound move. The source said, “They viewed it as a massive turnaround being required and a huge resource commitment". It is worth noting that Tesco usually prefers to set up its own operations in a new market, and grow organically, rather than through acquisitions. The Australian Financial Review newspaper separately reported that negotiations between Wesfarmers and Coles were in the final stages for a start to due diligence. Other local newspaper reports said KKR was close to finalising a joint venture with Woolworths to bid for Coles.

With thanks to Brian Moore at

Kamcity.