Sainsbury’s wins battle to buy Argos
1 April 2016
- From the section Business
Sainsbury’s has won its four-month battle to buy Argos after its owner after agreed to a £1.4bn takeover.
The supermarket said the deal to buy Home Retail Group would create a “multi-product, multi-channel” retailer with about 200 stores.
Sainsbury’s will pay a combination of shares and cash, with Home Retail shareholders holding 12% of the combined business.
The deal should be completed in the third quarter of this year.
Chairman David Tyler said he believed the combined business would be “very attractive to customers” and create value for shareholders of both companies.
The supermarket had faced a rival bid for Home Retail from South Africa’s Steinhoff, although a formal offer never materialised.
Dozens of Argos stores are expected to close over the coming years as leases expire, with some relocated in Sainsbury’s supermarkets.
Shares in Home Retail Group fell 1.1% to 164p in early trading, while Sainsbury’s fell 1.3% to 272.7p.
This post was written by FSB News