Sainsbury‘s offer depends on Homebase sale

The boards of Sainsbury's and Home Retail Group (HRG) have announced that they have reached agreement on the key financial terms of a possible offer for Home Retail Group by Sainsbury's. A prerequisite for the offer going ahead is the sale of the HRG subsidiary Homebase. As already reported, this is expected to go to the Australian Wesfarmers Group with its DIY chain Bunnings in the first quarter of 2016.