Sainsbury's £1.4bn Home Retail acquisition gets CMA approval

The £1.4bn combination of Sainsbury's and Argos owner Home Retail Group was a step closer on Friday, with the Competition and Markets Authority dropping its investigation and allowing the acquisition by the supermarket to proceed.

On 1 April, the boards of Sainsbury's and Home Retail Group announced that they had reached agreement on the terms of a recommended cash and share offer to be made by Sainsbury's for the entire issued and to be issued share capital of Home Retail Group.

Home Retail Group then published the scheme document in connection with the acquisition on 5 July, and Sainsbury's published the prospectus in relation to the New Sainsbury's Shares to be issued in connection with the acquisition.

"The boards of Sainsbury's and Home Retail Group plc welcome today's announcement by the CMA that it has unconditionally cleared the acquisition following its Phase 1 investigation," both companies said on Friday in a joint statement.

"The acquisition remains subject to the satisfaction or waiver of the remaining conditions as set out in the scheme document including, amongst others, the approval of the acquisition by the Financial Conduct Authority and the approvals of the Home Retail Group shareholders at the Court Meeting and General Meeting to be held on 27 July."