Argos owner Home Retail Group has rejected Sainsbury’s unsolicited cash and shares offer for the company.
Despite the rejection, both retailers are still considering their positions.
The grocer has been trialling Argos concessions in its supermarkets over the past year, and has said that the combination of both retail groups would provide effective cost synergy through property rationalisation, scale benefits and operational efficiencies.
The Sainsbury’s board has also said that a deal would be “an attractive proposition for the customers and shareholders of both companies, establishing a platform for long-term value creation”.
Sainsbury’s is required to announce by 2 February whether or not it intends to make a formal offer.
Sainsbury’s said: “There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.”
