The UK Competition and Markets Authority has unconditionally cleared Sainbury‘s takeover bid of Home Retail Group.
The CMA said it would not be pursuing an in-depth investigation into the acquisition, which is worth £1.4 billion, after the result of a phase one probe into the deal.
Sainsbury‘s said it was “pleased” with the CMA‘s approval, highlighting it as an “important step” in the acquisition process, which is expected to begin in September.
Home Retail Group, which owns Argos, has already recommended the takeover bid to its shareholders, who will decide on the matter during at AGM next week.
Sainsbury‘s has also already revealed some of its plans once the acquisition happens, such as current chief financial officer John Rogers taking over as chief executive of Home Retail Group.
There are also plans to install Argos concessions into Sainsbury‘s larger stores, which would create around 1000 new jobs.
“We are pleased that the CMA has unconditionally cleared our proposed acquisition of Home Retail Group. This is an important step in the deal process,” a Sainsbury‘s spokeswoman said.
“The combination of both businesses will create a multi-product, multi-channel proposition with fast delivery networks, giving customers what they want, whenever and wherever they want it.”