HOME5 Jan 2016 13:13
Supermarket giant J Sainsbury has revealed it has made an unsolicited approach for Home Retail Group, the owner of Argos and Homebase.
The cash and shares approach, which was made in November, was rejected.
Shares in Home Retail have shot up by more than 30pc to 132p following the announcement valuing the retailer at £1.04bn, having risen some 10pc ahead of it. Sainsbury's meanwhile sank by 4.78pc to 243.5p as investors reeled from the unexpected hostile approach.
Britain's second biggest grocer said it was now considering its position, and emphasised there was no certainty of an offer.
The supermarket is already trialling Argos stores in some of its larger supermarkets.
Sainsbury's said that a combination of the two businesses would "create a food and non-food retailer of choice for customers, building on the strong heritages of both businesses whose brands are renowned for trust, quality, value and customer service".
However, observers noted the statement lacked any mention of Homebase, Home Retail Group's DIY chain, and inferred that this could mean the division would be sold off.