A £1 billion bid to purchase the Home Retail Group made by Sainsbury’s has been rejected.
The supermarket group has revealed that it approached the owner of Argos and Homebase in November 2015, but that its proposal was turned down last month.
With a handful of Argos outlets already within a handful of its stores, Sainsbury’s is now considering its position and the next steps it will take in the initiative to strengthen its business against the rise of discounters and Amazon.
The Guardian reports that under takeover rules, the retail now has until 5pm on February 2nd to either announce a firm intention to bid or to withdraw.
Following the proposal from Sainsbury’s, shares in Home retail Group have increased 41 per cent, valuing the group at £1.1bn. conversely, shares in Sainsbury’s fell by almost five per cent.
Meanwhile, Home Retail Group said that it had rejected Sainsbury’s approach because it “undervalued Home Retail Group and its long-term prospects”.