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.”