Sainsbury’s gets go-ahead for Argos acquisition

Picture: PA
Picture: PA
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Sainsbury’s yesterday secured its four-month battle to buy Argos owner Home Retail Group after the board of the catalogue retailer agreed to the £1.4 billion deal.

The supermarket giant said the move will create a “multi-product, multi-channel” business.

The UK’s second biggest grocer was left a clear run to acquire Argos after rival suitor, South Africa’s Steinhoff International, pulled out last month. Chairman David Tyler said: “We are very pleased the board of Home Retail Group has recommended our offer… to its shareholders.

“The combined business will offer a multi-product, multi-channel proposition, with fast delivery networks, which we believe will be very attractive to customers.”

Jonathan Buxton, partner at Cavendish Corporate Finance, said: “Sainsbury’s can focus on cherry picking Home Retail for the best high street Argos stores to keep or to convert to its successful Sainsbury’s local network.”