Sainsbury’s shares have climbed to a four-year high on hopes it will sell Argos despite talks with a Chinese suitor collapsing.
The stock jumped 3.5 per cent, or 10.6p, to 317.8p – its highest level since August 2021 – as investors cheered signs the supermarket could offload the division.
The rally came even after talks to sell Argos to Chinese e-commerce giant JD.com ended on Sunday – a day after Sainsbury’s said discussions were underway.
Britain’s second-largest supermarket said JD.com’s offer was ‘not in the best interests of Sainsbury’s shareholders, colleagues and broader stakeholders’.
Dan Coatsworth, at broker AJ Bell, said the talks meant the starting gun has effectively been fired on Argos’ sale.
He added: ‘Sainsbury’s might have rejected an offer from JD, but the fact it hasn’t come out and said the business isn’t for sale at any price is telling.’
Sainsbury’s shares jumped 3.5%, or 10.6p, to 317.8p – its highest level since August 2021 – as investors cheered signs the supermarket could offload the division
Sainsbury’s bought Argos for £1.1billion in 2016, though it is understood to be worth considerably less than that today.
Argos is the UK’s third-most visited retail website with more than 1,100 collection points.
Coatsworth said ‘splitting Argos from the supermarket group won’t be easy, but not impossible’, given that much of the Argos estate is located within Sainsbury’s stores.
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