Home Retail Saga Over as Board to Recommend Sainsbury Offer
- Deal will end almost 10 years of independence for Argos owner
- Grocer believes buying Argos will help it compete with Amazon
A customer holds branded shopping bags outside an Argos store, operated by Home Retail Group Plc, in London U.K., on Tuesday, Jan. 11, 2010. U.K. retail sales fell last month as snow and the coldest December temperatures in at least a century deterred shoppers, the British Retail Consortium said.
Photographer: Simon Dawson/BloombergHome Retail Group Plc said its board will unanimously recommend J Sainsbury Plc’s 1.4 billion-pound ($2 billion) bid after South African retailer Steinhoff International Holdings NV withdrew from the battle to acquire the Argos owner.
The announcement effectively ends a protracted takeover saga that began on Jan. 5 when Sainsbury first disclosed its interest. After weeks of wrangling over price, Home Retail accepted a cash-and-stock bid, only for Steinhoff to enter the fray with a higher offer that it later withdrew to focus on acquiring electronics retailer Darty Plc.