Takeover of Argos nearly complete
Sainsbury’s is nearing completion in its acquisition of Argos as the Home Retail Group board of directors voted unanimously to recommend a £1.4bn bid to shareholders.
At the beginning of the year Sainsbury’s approached the Home Retail Group with a takeover bid, which was initially rejected. Following rival bidder Steinhoff’s decision to withdraw its offer in favour of a takeover of Darty, Sainsbury’s was free to pursue the final purchase which Sainsbury’s Chief Executive Mike Coup had said was a “must do deal at any price”. Home Retail Group’s board of directors will now recommend the deal to shareholders and it is expected that the deal should reach completion in the third quarter.
“Argos is both an icon of the British high Street and also a leader in the digital transformation of UK retailing,” said John Coombe, Chairman of Home Retail Group. “We are pleased that Sainsbury’s has recognised our progress and our potential with its recommended acquisition. This is a testament to the vision and hard work of management and all our colleagues.”
The deal will now be investigated and scrutinised by the Financial Conduct Authority.
“Our next steps are to focus jointly on ensuring we obtain the necessary regulatory clearances and that we are well prepared for the future integration of these two great retailers,” said Sainsbury’s Chairman David Tyler.
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