Sainsbury’s has finally completed its acquisition of the Home Retail Group, making the combined group one of the biggest retailers in the UK.
The deal was initially agreed back in March, and having been cleared by the CMA, Home Retail’s shareholders overwhelmingly voted in favour of the £1.4bn acquisition at the end of July.
Following completion of the deal, the entire issued share capital of Home Retail Group is owned by Sainsbury’s indirectly, through its wholly-owned subsidiary Sainsbury’s Intermediate Holdings Limited.
The deal has created one of the largest food and non-food retailers in the UK with Sainsbury’s hoping it will allow it to compete with the likes of Amazon and John Lewis in clothing and general merchandise. The group has said the move will create a “multi-product, multi-channel” business offering 90,000 products from around 2,000 stores, concessions and click & collect outlets.
Sainsbury’s CFO John Rogers is now Chief Executive of the rebranded ‘Sainsbury’s Argos’ business, replacing John Walden. He commented: “The way people shop is changing – customers expect choice, convenience, flexibility, fast delivery and to shop whenever and wherever they want. I am excited about leading the newly formed Sainsbury’s Argos management team. Our customers will benefit from great quality products and services and fast delivery networks, so whether customers want home delivery, Click & Collect or to visit our stores, we will make it easy and convenient for them.”
- Pro-active NAMs will have already anticipated Sainsbury’s new ability to meet shoppers’ expectation of choice, convenience, flexibility, fast delivery and to shop whenever and wherever they want.
- Time for others to play catch-up?