In a strategic move to broaden its product and diversify from grocery into general goods market, Sainsbury, one of the UK supermarket chain is at the verge of buying Argos.
In April, Sainsbury and Argos, a subsidiary of Home Retails Group agreed a £ 1.4bn takeover deal. However, the deal was under review by the regulator- The Competition and Markets Authority (CMA) to decide whether the deal will result in a substantial lessening of competition and would therefore warrant a full investigation.
Following initial review, the Competition and Markets Authority (CMA) said it had decided not to refer the deal to an advanced inquiry, which mean the CMA has approved Sainsbury’s £1.4bn takeover of Home Retail Group-owner of Argos. The deal if approve by Home Retail shareholders later this month will make Sainsbury the Britain’s biggest seller of general goods.
Unverified reports have it that the deal is set to create a £6bn non-food operation, putting Sainsbury in the league with M&S.