Investment group pulls out of Sainsbury’s takeover

Delta Two, the Qatari-backed investment group, has abandoned its proposed 10.6bn takeover of supermarket chain J Sainsbury. It said uncertainty in global markets and the need to pump funds into Sainsbury’s pension scheme were behind the decision.

sainsburyDelta Two, the Qatari-backed investment group, has abandoned its proposed £10.6bn takeover of supermarket chain J Sainsbury. It said uncertainty in global markets and the need to pump funds into Sainsbury’s pension scheme were behind the decision.

The investment group says that the deal was adversely affected by an increase in the necessary funding and cost of capital. It adds: “This reflected a combination of factors including the deterioration of credit markets which impacted the terms of lending and other facilities available to Delta Two following the initial approach to the Sainsbury board and the arrangements for the future funding of the Sainsbury pension schemes necessary to gain the backing of the Sainsbury pension trustees for any offer by Delta Two.”

Sainsbury’s says it will continue with its recovery plans and that the business “continues to have great potential under the leadership of its strong management team”.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here