Wed, 03 Feb 2016 | BUSINESS SALE
J Sainsbury's can celebrate now that it has secured Argos, its object of desire, and will tie up with Home Retail after all.
The £1.3 billion deal is the result of months of ongoing talks and offers, and will see Sainsbury's become the new owner of the Home Retail Group. The newly joined pair will be a greater force to be reckoned with in the tough retail marketplace, and united will have a stronger foothold against online sellers such as the likes of Amazon, which has also recently entered the food market, and discount retailers such as Aldi and Lidl.
According to Mike Coup, Sainsbury's chief executive, the move creates a non-food retailer with sales exceeding that of Amazon and John Lewis in the UK.
The deal has been structured in an unusual way – as reported by The Financial Times. Sainsbury's own finance arm will raise £440 million in cash and will be financed using customer deposits at Sainsbury's Bank. Another £100 million will be plugged in from the parent group to meet the regulatory requirements, and the remaining £500 million is to be sourced from savings.
Argos, some of whose concessions will slot neatly into excess spare space in Sainsbury's stores, suffered low sales over the Christmas period.
“You are adding a very very challenged business to a very challenged business,” Tony Shiret of Haitong securities warned.
Sainsbury's puts forward £1.3bn offer for Argos owner
A well-established, profitable, freehold, all weather tourist attraction situated on a stunning harbourside location. The main focus of the business is a purpose- built public aquarium which is supported by a vibrant Café with Ice Cream sales, Themed...
FREEHOLD
The business occupies a central position in the much sought after town of Halifax, West Yorkshire, with the hotel located above the beautiful restaurant & bar.
The business has a renowned reputation in Leeds and further afield, and therefore attracts loyal and local customers from Leeds and surrounding conurbations, as well as those from further afield.
LEASEHOLD
15
|
May
|
Essex electric truck maker set to appoint administrators | ADMINISTRATION
An Essex-based company that produces electric trucks has fil...
15
|
May
|
Accountancy announces merger with Irish firm | MERGER
Audit, tax and business advisory firm MHA has announced a me...
15
|
May
|
Dorset and London law firms announce merger | MERGER
A law firm based in Dorset has merged with a London-based pr...
17
|
Sep
|
Buyer or tenant sought for 350k sq ft Argos distribution centre | COMMERCIAL PROPERTY
A tenant or buyer is being sought for a 350,000 sq ft Argos ...
14
|
Jan
|
Homebase to be purchased by Wesfarmers | DIVISION SALE
Home Retail Group is nearing a sale of its DIY chain to Wesf...
06
|
Jan
|
Sainsbury's circles Argos and Homebase owner | BUSINESS SALE
Sainsbury's has made known its bid approach, an “...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.