Argos owner Home Retail Group’s shareholders have unanimously voted in favour of the proposed £1.4bn acquisition by Sainsbury’s.
At the group’s annual general meeting today, 99.95% of shareholders gave the green light to the deal, which was agreed back in March.
Home Retail’s board had previously recommended the offer to its shareholders after Sanisbury’s outbid South African retail conglomerate Steinhoff during a tussle for control of Argos.
It comes less than a week after Sainsbury’s was given approval by the Competition and Markets Authority (CMA) to complete the deal.
The CMA said it would not be referring the acquisition for an in-depth investigation following the result of a phase one probe into the deal, clearing the way for the grocer to complete the deal in September.
Sainsbury’s has started to unveil some of its plans for the business, including its intention to appoint its current chief financial officer John Rogers as chief executive of Home Retail Group.
The supermarket giant expects to create around 1,000 net new jobs by installing Argos concessions into Sainsbury’s larger stores, as chief executive Mike Coupe bids to create one of the largest non-food retailers in the UK and compete with the likes of Amazon and John Lewis in fashion and general merchandise.
Sainsbury’s will also harness the power of Argos’s delivery network with its Fast Track same-day delivery service
Sainsbury’s will also harness the power of Argos’s delivery network with its Fast Track same-day delivery service.
Last week Sainsbury’s revealed it was preparing to pilot same-day delivery from 30 of its stores as it drives its fulfilment proposition.
Coupe insisted earlier this month that he remained “absolutely convinced” of the rationale behind the deal, despite the UK’s exit from the European Union – although this was highlighted as a potential risk to the long-term performance of the enlarged business in a prospectus relating to the £1.4bn deal.
The 182-page document flagged that Brexit “has caused and may continue to cause market uncertainty and volatility”.
It added: “If the UK’s economic condition weakens, or if financial markets continue to exhibit uncertainty and/or volatility, the ability of the Sainsbury’s Group, the Home Retail Group or, following completion of the acquisition, the combined group to grow their respective businesses could be materially adversely impacted.”