5th January 2016
Sainsbury’s has disclosed that it approached Home Retail Group last year in a bid to buy the firm but that its offer was rejected.
In a statement issued on Tuesday the supermarket giant said it made the offer to the Argos and Homebase owner in November.
Shares in Home Retail Group soared by 37% to 135.7p by 3pm, following the news while Sainbury’s stock was down by 4% to 245.9p
In the announcement Sainsbury’s said: “The board of Sainsbury’s believes the combination of Sainsbury’s and Home Retail Group is an attractive proposition for the customers and shareholders of both companies, establishing a platform for long-term value creation.”
Over the past year, Sainsbury’s had been working in partnership with Home Retail Group, trialing a number of Argos concessions in its stores.
Sainsbury’s, which said it is now ‘considering its position” added: “The combination is an opportunity to bring together two of the UK’s leading retail businesses, with complementary product offers, focused on delivering quality products and services at fair prices, through an integrated, multi-channel proposition.”
Under company rules, Sainsbury’s must decide by 2 February whether or not it wants to make a formal offer.