Sainsbury's tables £1.3bn bid for Argos

Retail giant Sainsbury's has moved to take over Argos after tabling a £1.3bn bid.

Tuesday, 2nd February 2016, 10:45 am
Updated Friday, 8th June 2018, 6:46 am
Bid made for Argos TSP-141109-145343003

The bid follows an approach last year, which was rejected. The supermarket giant’s offer for Home Retail Group - Argos’ owner - is equivalent to 161.3p per share.

Sainsbury expect the joining of the two companies to result in £120m in annual savings by 2019.

More importantly, it will strengthen the supermarket’s online presence as well as its ability to compete with rival traditional retailers - to “create a food and non-food retailer of choice for customers”.

However, any deal will depend on the finalisation of the sale of Homebase to Australian company Wesfarmers. The sale of the DIY chain has already been agreed, for £340m.

Sainsbury’s chief financial officer John Rogers said he was confident that shareholders of both Sainsbury’s and Home Retail would be in favour of the Argos deal.

The £120m in savings per year was also a “conservative” figure, he added.

It is expected that Sainsbury’s can offset £140m costs in the first three years by moving Argos stores into supermarkets when their leases expire.

There will also be the opportunity to sell Sainsbury’s own-brand clothing and homeware throughout Argos’ 734 outlets.

Don’t miss out on all the latest breaking news where you live.

Here are four ways you can be sure you’ll be amongst the first to know what’s going on.

1) Make our website your homepage

2) Like our Facebook page

3) Follow us on Twitter

4) Register with us by clicking on ‘sign in’ (top right corner). You can then receive our daily newsletter AND add your point of view to stories that you read here.

And do share with your family and friends - so they don’t miss out!

Always the first with your local news.

Be part of it.