Retail news round-up on January 27, 2016: Irish government to introduce new grocery regulations and Sainsbury’s Qatari owner could support its new bid for Home Retail.
Ireland to soon sign new grocery regulations into law
The Irish government is set to finally introduce new grocery rules after launching a consultation on the proposed laws more than 12 months ago.
The Department of Enterprise, Jobs and Innovation is hoping to sign the regulations into law in the coming weeks.
The new laws will help tackle allegations of supposed bullying and manipulation of suppliers by big grocery chains.
Sainsbury’s largest investor could support renewed offer for Home Retail
The Qatari owner of Sainsbury’s is likely to back the grocer’s renewed offer for the Argos and Homebase owner as the Takeover Panel’s deadline of February 2 nears.
The Qatar Investment Authority (QIA), which owns 25% of the supermarket giant, has indicated that it might be willing to support a £1bn-plus bid for Home Retail Group, according to The Times.
It is understood Sainsbury’s is keen to try to agree the outline of a deal with Home Retail ahead of the deadline or make enough progress that the panel agrees to grant an extension.
Tesco shareholders could claim huge damages over accounting scandal
Shareholders in Tesco are to claim huge damages as a result of the accounting scandal that rocked the grocer.
Group litigation fund Bentham Europe has gathered institutional investors who believe they lost out tens of millions when the retailer admitted overstating its profits by £250m.
It is understood that the investors will claim for damages of at least £100m.
Jeremy Marshall, chief investment officer at Bentham, said: “Investors are understandably cautious of a knee-jerk recourse to litigation. However, it is becoming increasingly clear to us that concerns regarding the corporate governance regime in our leading companies necessitate affirmative action.”