Sainsbury’s could be the next supermarket to succumb to a takeover, after Apollo was said to be running the rule over the grocer.
The US private equity giant has been rumoured to be interested in Britain’s second-biggest supermarket chain, after it missed out on a takeover of Asda last year.
Apollo is also in talks about joining the Fortress consortium bidding for Morrisons.
Shares in J Sainsbury have risen by almost a third this year, valuing the supermarket at around £6.9bn.
Apollo is said to be attracted by the large property holdings, as well as the group’s healthy cash generation.
However, Apollo has apparently not appointed lawyers or advisers; nor has it held talks with Sainsbury’s. It is thought likely that Apollo will wait to see if it will join a successful Fortress bid for Morrisons, as this would rule out any move for Sainsbury’s.
Sainsbury’s is a less plum prize as it has only 53% freeholds, far lower than Morrisons’ famed 85%.
