Sainsbury’s has made a formal £1.2bn bid to acquire Argos owner Home Retail Group (HRG).
In an announcement made today Sainsbury’s said that “the Board of HRG had indicated to Sainsbury's that it would be willing to recommend Sainsbury's offer, if made".
Sainsbury's value each HRG share at 173.2p, and the deal is on the same terms as an earlier, but not formal. proposal.
The other frontrunner for the takeover, South African group Steinhoff International, confirmed that it had withdrew from negotiations, leaving Sainsbury’s to finalise an agreement.
Sainsbury's pursuite of Argos has been a hot topic of discussion for weeks following news of an earlier unsuccessful bid.
The supermarket's chief executive Mike Coupe battled two rounds of press calls following the release of its third quarter earnings, covering the festive period earlier this year. Despite an improved market share, marred by a 0.4 per cent slip in sales, the hot topic of conversation was unsurprisingly the potential buyout of Argos.
Since then, a number of investors and analysts have raised an eyebrow at Sainsbury’s plans, leading the grocer to send out a 22-slide presentation in an attempt to ease concerns.