Woolworths has withdrawn from the auction of Hong Kong’s second largest grocery chain, ParkNShop, just days before the deadline for final bids.

The supermarket chain was reportedly preparing to make its final offer, estimated to be around US$3 billion, however, withdrew on Friday amid reports that the company’s board believed ParkNShop’s price demands were too high.

Woolworths was seen as a lead candidate to take over the chain, with other prospective bidders including Japanese department store operator, Aeon; and Chinese supermarket chain, China Resources Enterprise.

Grant O’Brien, CEO of Woolworths, has repeatedly refused to confirm or deny that Woolworths is interested in ParknShop, which was put up for sale by Hutchinson Whampoa earlier this year.

ParknShop has 345 stores in Hong Kong, mainland China and Macau. It is Hong Kong’s second largest supermarket operator with about $US2.8 billion in sales.