Australian retail giants tipped to take over rival
Coles Myer and Woolworths expected to bid for Foodland
Australia’s two biggest retail groups, Coles Myer and Woolworths, are both seen as likely bidders for rival Foodland, which has announced a demerger.
Foodland Australia is planning to spin off its New Zealand business, the Progressive supermarket chain, as it fights off a hostile approach from Metcash, which has bid $846m for Foodland’s Australian businesses.
Foodland believes the demerger wil make the Australian operations more attractive to a higher bidder, with Coles Myer and Woolworths both seen as potential buyers.
Foodland chief executive Trevor Coates has said yesterday that there is more than one potential bidder for the Australian assets, which include the Action, Dewson and Super Valu chains.
