Home Retail Group directors accept Sainsbury’s bid
The proposed acquisition is valued at approximately £1.2 billion and subject to approval from regulators.
Home Retail Group is a leader in online and mobile retailing and Sainsbury's believes the deal will significantly enhance Sainsbury's digital capability in food, clothing and general merchandise.
Commenting on the announcement, David Tyler, chairman of Sainsbury's said: "We are very pleased the Board of Home Retail Group plc has recommended our offer for the acquisition of its business 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 and which will create value to both sets of shareholders.
"The acquisition will now be carried out through a scheme of arrangement, helping to facilitate a speedy completion which is in the interests of the customers, colleagues and shareholders of both businesses. 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."
John Coombe, Chairman of Home Retail Group plc said: "Argos is both an icon of the British High Street and also a leader in the digital transformation of UK retailing. We are pleased that Sainsbury's has recognised our progress and our potential with its recommended acquisition of Home Retail Group plc. This is a testament to the vision and hard work of management and all our colleagues. We thank them for all they have done for Home Retail Group plc and Argos in particular and wish them well for the future."
