(Alliance News) - J Sainsbury PLC is in talks to sell its banking arm to a US private equity firm, Sky News reported on Saturday.
The grocer is in advanced talks with US-based private equity firm Centerbridge Partners, Sky said, with a deal likely to be about GBP200 million.
The discussions are said to be within weeks of a potential agreement although they could still fall apart, a person close to the deal told Sky.
Sainsbury's Bank has around two million customers, offering products including home insurance and credit cards.
Under their deal, the private equity firm would acquire the business outright and use the Sainsbury's brand under a licensing agreement with the supermarket chain.
https://news.sky.com/story/sainsburys-in-talks-to-offload-banking-arm-to-private-equity-group-centerbridge-12392840
Last weekend, the Sunday Times reported Sainsbury's could be the next UK grocer to be subject of bid interest from the private equity space.
According to the report, private equity firms were exploring a potential takeover of Sainsbury's with a view to possibly launching offers of more than GBP7 billion, as the bidding war for peer Wm Morrison Supermarkets PLC reignited interest in the UK grocery sector.
The Times reported US firm Apollo Global Management Inc was said to be "running the rule" over the UK's second-largest supermarket chain, according to the newspaper.
By Paul McGowan; paulmcgowan@alliancenews.com
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