As had been widely predicted, Sainsbury's went back to Home Retail Group (HRG) this week with a formal offer for the business - effectively Argos.
The deal is worth £1.3bn, equal to 161.3p a share, with HRG reportedly turning down a proposal of 150p a share as the two protagonists negotiated throughout last weekend. HRG was said to have been hoping to achieve 170p a share.

The supermarket chain approached HRG towards the end of last year regarding a possible offer but was rejected.

Following the new offer HRG said that while it continued to believe in the prospects for the standalone company it recognised that the offer would prove attractive to its shareholders, and that it would recommend it.

Read more in the February 5 issue of DIY Week