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Key day for Home Retail Group as shareholders back Sainsbury's bid

Shareholders of Home Retail Group Wednesday approved a £1.4 billion ($1.83 billion) takeover offer by U.K. supermarket J Sainsbury after they gave their backing to the retailer's takeover bid.

Sainsbury's agreed in April to buy Home Retail Group, the parent company of Argos and Habitat, and, now the deal has been approved, the deal could be completed by September this year.

A man puts a shopping bag into a car outside a Sainsbury's store in London
Ben Stansall I AFP I Getty Images
A man puts a shopping bag into a car outside a Sainsbury's store in London

Earlier Wednesday Home Retail's Chief Executive, John Walden, told CNBC how he was looking ahead to the vote.

"We're really just excited to get on with things, the board and I think it's a great deal and our shareholders will decide later today if they agree with that and our colleagues are anxious to get on with things as a combined company with Sainsbury's."

U.K. competition regulators gave the all-clear for the acquisition dispelling concerns that there could be a prolonged competition inquiry. The supermarket has said that it plans to create 1,000 jobs through the acquisition.

Home Retail Group shareholders will receive 55 pence in cash per share and 0.321 new Sainsbury's shares plus an additional payment capital return relating to disposal of the group's other chain, Homebase, and 2.8 pence in lieu of a final 2016 dividend.

Sainsbury's and Home Retail Group have been operating in an increasingly competitive U.K. retail space. Earlier this year, Sainsbury's chief financial officer John Rogers said the takeover would create a "leading food and non food retailer of choice to customers; offers customers a winning combination of location, range, speed and flexibility."

The deal would also increase Sainsbury's retail presence and delivery networks, Rogers said "meeting the changing needs that customers are expecting today."

Home Retail's Walden said that, despite the competition, the deal offered opportunities.

"It's a competitive market across all product categories but being able to offer a full range of food, non-food, apparel, across all kinds of channels and in potentially up to 2,000 locations…that's a proposition that doesn't otherwise exist in the country, and it's being offered by a couple of iconic brands so we think the proposition is unique."

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