Sainsbury’s shares rise despite Argos sale talks collapsing
The shares of the supermarket giant Sainsbury saw a significant leap on Monday morning at the weekend of talks to sell Argos to the Chinese e-commerce company JD.com.
Britain’s second largest grocery chain, investors responded to the news, while the FTSE 100 index has increased by 6 percent.
Sinsbury confirmed that on Saturday, one of China’s largest retailers, JD.com and Argos have discussed a potential sale, and a movement proposed can accelerate the transformation of Argos “.
However, until Sunday, the supermarket announced that it “terminated”. Sinsbury’s conditions and commitments proposed by JD.com, “Sinsbury’s shareholders, colleagues and expansive stakeholders are not in the benefit of” he said.
Although the negotiations ended rapidly, Aj Bell’s investment expert Dan Coatsworth said that short talks, ultimately fruitless, said “the fire weapon was effectively triggered in Argos’s sale”.
“He may have rejected an offer from the Chinese retailer JD, but tells the fact that the enterprise was not sold at any price,” he added.
Argos is the second largest general product retailer with the third most visited retail website in the UK and more than 1,100 collection points.
“JD.com said that only Sinsbury’s shareholders, colleagues and wide stakeholders will be ready to deal with a series of financially reviewed terms and commitments.
“Accordingly, he confirmed that Sinsbury has now terminated his discussions with JD.com.”
In the statement, he added: uz We take measures to increase the relevance level to expand the range, improve digital capabilities and increase the increase, and to provide more operating model efficiency, while we take measures to spend in Argos. ”
Sinsbury’s said he continued to see “strong acceleration ve and focused on presenting the next level strategy.
JD.com entered the e-commerce sector in 2004 and became the first major e-commerce company listed in Nasdaq in May 2014, according to its website.
After the sales in Argos, negotiations were marked and the firm focused on a renovation in the chain.
Argos sales fell by 2.7 percent per year in March to £ 4.9 billion, but the chain grew by 4.4 percent in the first quarter of the new financial year.
Coatsworth in Aj Bell said: “Sainsbury’s described a first food strategy for a while and drew the basis of Argos’s long -term plans.
“The general goods work has not done so good for a few years and felt that Argos privileges were hiding in the corner rather than an important part of a Sinsbury’s store.”
Considering that most of the Argos land is located in Sinsbury stores, he said, “It is easy to divide Argos from the supermarket group, but not impossible.”
“This means that a new owner should trust the remaining store, open more stores, or consider making Argos a digital brand only,” he added.
