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Sainsbury's takeover of Argos approved by CMA

Sainsbury's tabled a bid worth around £1.4 billion in February. Credit: PA

Sainsbury's proposed takeover of Argos owner Home Retail Group has been approved by the Competition and Markets Authority.

Sainsbury's tabled a bid worth around £1.4 billion in February.

A statement posted on the London Stock Exchange this morning said: "The CMA has decided, on the information currently available to it, not to refer the following merger to a Phase 2 investigation."

Home Retail chief executive John Walden will leave the group once Sainsbury's seals its acquisition, currently expected in the third quarter of this year.

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Sainsbury's posts 0.8% fall in sales

Sainsbury's. Credit: PA Wire

Sainsbury's has posted a 0.8% fall in sales as it continues to face pressure amid a supermarket price war.

Britain's second biggest supermarket reported the drop in like-for-like sales excluding fuel for the 12 weeks to June 4.

The fall represents a setback for the company, after a return to quarterly growth for the first time in more than two years, in the previous three months.

Mike Coupe, chief executive of Sainsbury's, said: "Food price deflation continues to impact our sales and pressures on pricing mean the market will remain competitive for the foreseeable future."

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Sainsbury's agrees to buy Argos owner for £1.2 billion

Sainsbury's said the deal would make it a 'world-leading' retailer Credit: PA

Sainsbury’s has bought out the Argos owner Home Retail Group for £1.2 billion.

The deal comes after four months of tough negotiations which saw South African rival Steinhoff abandon its bid to buy the group earlier today

Sainsbury’s said the buyout would allow it to become a "world-leading" retailer as the supermarket sector comes under intense competitive pressure, and will create £160 million of cost savings.

The UK grocery retail industry is undergoing a period of intense change in customer shopping behaviour and in the competitive environment.

We will create a multi-product, multi-channel proposition with fast delivery networks that we believe will be very attractive to the customers of both businesses."

– David Tyler, Sainsbury's chairman
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