Argos sale collapses after Sainsbury’s ends talks with Chinese buyer
A Chinese takeover of Argos has collapsed after its owner Sainsbury’s walked away from talks just 24 hours after confirming it was looking to sell the retailer.
On Sunday, Sainsbury’s said JD.com, the Chinese retail giant that was exploring a takeover of Argos, had issued a “materially revised set of terms and commitments” which were “not in the best interests of Sainsbury’s shareholders, colleagues and broader stakeholders”.
As a result, the supermarket chain confirmed it had terminated discussions with the Beijing-headquartered firm.
The about-turn comes just a day after The Telegraph revealed the two companies had been locked in discussions about a potential deal for Argos.
Confirming the talks on Saturday, Sainsbury’s said a sale to JD.com “would accelerate Argos’ transformation”, and that any deal would include commitments from the Chinese company “for the benefit of customers, colleagues and partners”.
The collapse of the discussions marks a setback for Sainsbury’s, which has refocused on its food offering in recent years as demand for household goods from Argos has slumped.
The supermarket chain bought Argos for £1.1bn nine years ago, but valued it at just £344m in its most recent accounts.
Sainsbury’s insisted it was making good progress in its turnaround plan for Argos, saying it was taking action to extend the retailer’s range, enhance its online offering and make it more relevant to customers.
It added that Argos had traded in line with expectations over the summer, thanks in part to good weather.
This is a breaking story, more to follow.