2/2/2016 10:53:33 AM
Sainsbury’s offers £1.3bn for Home Retail Group
Sainsbury’s has made a £1.5bn bid to takeover Home Retail Group.
The offer follows an approach by the supermarket last July to buy the Group which owns Argos and Homebase.
In a statement to the London Stock Exchange regarding the deal Sainsbury’s said that a deal would enable them to cross sell to each other’s customer bases. As well as operating Argos concessions within some of the Sainsbury’s store portfolio.
The supermarket added that a takeover would allow it to operate an ‘enhanced supply and delivery network’.
Both brands have made efforts to take a slice of the mobile market, in the summer Argos added over the counter trade in services to its mobile proposition. Sainsbury’s MVNO shut down last month but the supermarket has insisted that it remains committed to the market.
Urge to merge
In recent years mergers between high street retail giants have become more common. The deal between Dixons Retail and Carphone Warehouse in particular has been a major success with the combined business growing significantly since it was merged back in 2014.