UPDATE: Sainsbury ends Argos talks with JD.com, keeps profit outlook
J Sainsbury PLC said on Sunday it has ended talks to sell Argos to Beijing-based e-commerce firm JD.com Inc, citing unfavourable terms.
The supermarket chain confirmed it had ‘terminated’ discussions after JD.com sought to proceed on what Sainsbury’s described as a ‘materially revised set of terms and commitments’ that it deemed not in the best interests of shareholders, staff, and other stakeholders.
The move came just a day after Sainsbury’s said it was pursuing a deal that could ‘accelerate Argos’ transformation.’
Argos is the UK’s second-largest general merchandise retailer, operating more than 1,100 collection points and running the country’s third most visited retail website.
Sainsbury’s added that it continues to see ‘strong momentum’ in its business and remains focused on delivering its ’Next Level’ strategy.
It said it still expects to achieve around £1 billion in retail underlying operating profit and more than £500 million in retail free cash flow in the 2025/26 financial year.
Shares in Sainsbury opened 4.8% higher at 322.00 pence in London on Monday. JD.com shares were 0.2% lower at HK$131.50 in the afternoon in Hong Kong.
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