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Global private equity group CVC has pulled out of a consortium eyeing a bid for Australia's Coles Group Ltd after going through the retailers' books, the buyout group said today.
The consortium, which includes Kohlberg Kravis Roberts, said it could not rule out further changes to the group interested in buying all or parts of the retailer which put itself up for sale in February.
"I can confirm that CVC is no longer part of the consortium," a spokesman for the buyout group said, confirming a report in The Australian newspaper.
"One can presume they have some concerns about the state of the business."
The bid group had finished a two-week stint examining Coles' books on Friday. This included access to detailed financials, lease arrangements and supply contracts.
The KKR group also includes Bain, Blackstone Group, Carlyle Group and TPG.
Rival bidder Wesfarmers has already offered A$19.7 ($22.47) billion for Coles, and started due diligence on May 25.
The Australian conglomerate has teamed up with Macquarie Bank and private equity groups Permira and Pacific Equity Partners.
British retailer Tesco Plc also hired an investment bank to look at a possible approach but later pulled out of the race.
- REUTERS
