Wesfarmers Likely To Win Priceline Bid As Woolies Drop Out
Woolworths has pulled out of its takeover bid to control Priceline parent company Australian Pharmaceutical Industries, leaving Wesfarmers the only serious contender.
Wesfarmers currently owns 19.3 per cent of API, and make a bid to acquire the entire company for $1.55 a share in September.
Just last month, Woolworths entered the fray, making a takeover offer of $1.75 a share, a price which Wesfarmers refused to sell at.
Woolworths now says it wasn’t able to “validate the financial returns it requires in line with the group’s capital allocation framework”.
“We are grateful to the board and leadership team of API for their constructive engagement and support throughout the due diligence process,” Woolworths boss Brad Banducci said.
Wesfarmers’ deal with API “remains in place and is on track for completion in the first quarter of calendar year 2022”, according to a spokesperson from API.