Overcast

Overcast

max temp: 17°C

min temp: 12°C

Search

Sainsbury’s launches improved £1.3bn offer for Argos owner Home Retail Group

09:17 02 February 2016

Sainisbury's has tabled an improved £1.3bn offer for Argos owner Home Retail Group.

Sainisbury's has tabled an improved £1.3bn offer for Argos owner Home Retail Group.

Sainsbury’s has tabled an improved deal worth up to £1.3billion to take over Argos owner Home Retail Group.

The supermarket giant has made a “possible offer” of 161.3p per Home Retail Group share, involving a mix of cash and shares which, if accepted, would leave Home Retail Group shareholders owning about 12% of the combined group.

Home Retail Group said today that it still “believes in the prospects for the standalone company” but the possible offer provided an “attractive opportunity” for its shareholders to receive full valuation for their shares.

However, the sale of Home Retail Group’s DIY chain, Homebase, to Australian business Wesfarmers is said to be a condition of the possible offer by Sainsbury’s.

The £340million deal, which will see the Homebase name replaced by the Bunnings Warehouse brand, is still awaiting the approval of shareholders.

Sainsbury’s had until 5pm today to make a fresh bid for Home Retail Group after its initialy £1bn offer was rebuffed in November.

The companies have now agreed a three-week extension to the deadline, until 5pm on Tuesday, February 23, in order to complete due diligence on the proposed offer.

Sainsbury’s said previously that it could could close a raft of Argos stores and relocate them within its supermarkets if the deal was given the go-ahead. Retail experts believe between 150 and 200 Argos stores could be affected.

The supermarket chain has already been working in partnership with Home Retail Group to test a number of Argos concessions within its stores. It believes the combination of the two companies would create a strong food and non-food retailer with strong heritages.

If approved, the combination of the two companies would trigger synergies of about £120mn in the third full year after completion of the deal, Sainsbury’s said.

It is estimated that about a half of the savings will be found by relocating Argos stores into Sainsbury’s supermarkets as concessions, as well as launching new Argos concessions and expanding Sainsbury’s click and collect service.

It also expects to deliver a third of the savings by removing back office functions which overlap between the two companies and by selling Sainsbury’s clothing and homeware products to Argos customers.

The supermarket said that, in order to achieve the savings, it would face a one-off costs of about £140m, split equally over three years.

1 comment

  • I just hope Sainsburys keeps its receipt then they can then return it to their local branch of Argos for a full refund upto 14 days later.

    Report this comment

    dale craven

    Tuesday, February 2, 2016

The views expressed in the above comments do not necessarily reflect the views of this site

The man, in his early 60s, had been celebrating his brother’s birthday and was karting at the circuit, near Beccles, when he was reportedly involved in a collision with another go-kart.

Fifty years ago this week, circus legend Billy Smart collapsed and died in Ipswich. He was such a huge star that his death made headlines around the world.

Decisions on whether to reduce access to IVF treatment and re-focus services delivered to vulnerable adults were deferred today.

A male cyclist was taken to hospital with minor injuries following a fall from his bike in Washbrook this morning.

St Elizabeth Hospice in Ipswich has won £10,000 after a Kesgrave cyclist won a public vote in an online fundraising competition.

The Ipswich Star today launches a new campaign to highlight problem roadworks in the town.

The parents of a father-of-one whose body was discovered beside the River Orwell near Ipswich railway station have paid tribute to their ‘cheeky’ son.

A young gambling addict has ended up in court after using his workmates’ and girlfriend’s credit cards to chase his betting losses.

A driver found asleep in his car with the door open in Ipswich town centre while above the legal alcohol limit has been banned from the road.

Police have said two Ipswich schoolgirls have reported being frightened by a man dressed as The Joker from Batman.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Streetlife

Newsletter Sign Up

MyDate24 MyPhotos24