Sainsbury mulls over offer for Argos owner Home Retail Group

London

J SAINSBURY is considering making an offer for Home Retail Group in a deal that would pool two of Britain's biggest retailers as they struggle to boost sales in the face of intensifying competition.

The supermarket company said on Tuesday it's considering its position after a cash-and-shares bid was rejected in November by Home Retail, the owner of Argos catalogue stores and the Homebase home-improvement chain. It now has until Feb 2 to decide whether to make a formal offer under British takeover rules.