Sainsbury's to buy Argos owner?
Sainsbury's have said that they've made an approach to buy Home Retail Group, who just happen to own Argos. They said that their offer was rejected, but that they're still weighing up the situation, and there might be another offer.
The supermarket will have to be quick though, because thanks to British takeover rules, they've only got until February 2nd if they're going solidify their intention to make another offer, or they have to leave the deal.
In a statement, which mentioned the Home Retail Group offer, Sainsbury's said that they are currently trialling some Argos concessions in their stores, and that a merger would be an "attractive proposition" for themselves, and customers.
They added: "The combination is an opportunity to bring together two of the UK's leading retail businesses, with complementary product offers, focused on delivering quality products and services at fair prices, through an integrated, multi-channel proposition," and that any merger would build on "the strong heritages of both businesses".
If the two teamed up, there would also be an increased opportunity for financial services, such as credit cards and loans.
Of course, the Home Retail Group issued a profit warning back in October, which opened the idea of a takeover for Sainsbury's. Seeing as the supermarket it in a vicious price war with rivals, and being undercut by Aldi and Lidl, they are clearly exploring their options to see what they can do to make Sainsbury's relevant again.
At the end of last year, the supermarket reported that their half-year profits fell 18%.
TOPICS: High Street News