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Sainsbury's rebuffed in bid for £1bn-valued Argos owner

Sainsbury's has had an undisclosed approach for the £1 billion-valued group that owns Argos and DIY chain Homebase rejected.

The supermarket said it made an initial approach for Home Retail Group in November and is still deciding whether to table a former offer.

Sainsbury's has worked closely with Home Retail with Argos concessions trialled in the supermarket's stores last year. Credit: PA Wire

The supermarket, which made the approach amid an industry price war, said a combination of the two stores would create a strong food and non-food retailer with strong heritages.

Shares in Home Retail jumped 34% after details of the November approach emerged, while Sainsbury's stock slipped more than 3%.