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.
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”.