Sainsbury's remains committed to Home Retail purchase despite Brexit vote

 
Oliver Gill
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Sainsbury's Open New Energy Efficient Store In King's Lynn
Sainsbury's has recently overtaken Asda as the second largest UK supermarket by market share according to Kantar Worldpanel (Source: Getty)

Sainsbury’s reaffirmed today its desire to purchase Home Retail group despite the increased economic uncertainty after the UK voted to leave the EU.

"We remain absolutely convinced by the strategic rationale of the deal and we think it will strengthen our business. We remain committed to making the deal happen," said CEO Mike Coupe.

The supermarket has published a prospectus for the purchase that takes into account the result of the UK referendum.

"Clearly the economic conditions have changed and we have to recognise that in the documentation," Coupe said.

The deal agreed April comprised a combination of cash and shares. While at the time it valued the Argos owner at £1.4bn, the transaction value has reduced due to a 19 per cent in fall in the value of Sainsbury’s shares.

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