Sainsbury’s has officially tabled a £1.4billion bid for Milton Keynes-based company Home Retail Group, while rival bidder Steinhoff has officially ended interest.
The two companies had officially bid for HRG, who own the Argos retail chain. Both parties were given deadlines by the City of London of March 18th to make full formal bids for the company.
The deal pushed by Sainsbury’s remains at the same valuation as a cash and shares deal whose proposed terms were previously agreed between the boardrooms of the two companies. The supermarket chain officially announced its intentions to buy HRG shortly before Christmas, and had agreed terms in early February.
Sainsbury’s deal values Home Retail Group at 173.2p per share, and was confirmed with less than 30 minutes remaining before the City deadline.
Earlier in the day, retail conglomerate Steinhoff had officially announced its intentions to end its interest in HRG. The South African retailer had made a bid for the company in mid-February, but announced in a statement that it was no longer interested in buying HRG.
The company, who own UK-based retailers Harveys and Bensons for Beds, decided to instead focus on a £673m deal to buy French electronics retailer Darty.
At the end of the trading week, shares in HRG closed nearly 10% down, at 163.2p, while shares in Sainsbury’s closed nearly 3% down, at 273.2p.