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UK watchdog investigates Sainsbury-Home retail deal

Staff writer |
Britain's competition watchdog said it was launching an inquiry into supermarket chain J Sainsbury Plc's 1.4 billion pound ($2 billion) takeover of Home Retail Plc.

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The Competition and Markets Authority said that it was investigating whether the deal could hurt competition in the UK.

The deal, which was backed by Home Retail's board last month, will help Sainsbury diversify its grocery-heavy portfolio, analysts say.

Home Retail sells electronics, homes appliances, jewelry and other goods under its Argos chain and home improvement products through its Homebase-branded stores. The CMA said it would decide on the matter by July 25.