Sainsbury's ends talks on sale of banking unit

UK supermarket chain Sainsbury's said it had ended talks over the sale of its banking operation, claiming the potential bid did not offer good value for shareholders.

“We continue to make progress strengthening and simplifying our Financial Services business in line with our strategy and we remain comfortable with consensus profit forecasts for the division,” the company said in a statement.

The approach came from an unnamed suitor in November 2020. Current analyst consensus for Financial Services underlying operating profit for the current fiscal year are £22- £26m, £43m for 2022/23 and £49m the following year.

"Whilst the board of Sainsbury's believe that it was in the best interests of shareholders to explore these expressions of interest, it has concluded that these do not offer better value for shareholders than will be realised through retaining Sainsbury's Bank," it said.