Coles, the Australian supermarket group, has walked away from a proposed $4 billion takeover of Greencross, the parent company of pet retailer Petbarn, ending speculation about a major expansion into the pet care sector. The decision comes as a relief to investors, who had expressed concerns about the scale and strategic rationale of such a large acquisition for a company primarily focused on grocery retail.

Details of why the deal collapsed were not fully outlined, but the abandonment removes uncertainty that had been weighing on Coles' share price and investor sentiment. The move suggests Coles will instead concentrate on its core supermarket operations rather than diversifying into pet retail through a costly acquisition.