Sainsbury’s biggest investor – Qatar Investment Authority – reportedly “warming” to Home Retail Group deal

Sainsbury’s largest investor, the Qatar Investment Authority (QIA), is “warming” to the idea of the UK-based supermarket’s proposed bid for the Home Retail Group, according to reports in the UK press. Reports in both The Times and The Guardian this week have suggested that the QIA – which has a 25% stake in the supermarket company – has come round to supporting the tie-up, provided Sainsbury’s does not overpay. The Guardian quoted “a source close to the deal” as saying that £1.4bn would be as much as QIA would be prepared to support.

As previously reported, Sainsbury’s – which had its initial offer for the group rejected in December – is most interested in the Home Retail Group’s Argos business, and its recently-expanded delivery network. Last week, Home Retail Group announced that it had agreed to sell its Homebase chain of DIY stores to Australia-based Wesfarmers for £340m.