Sainsbury’s has ended its talks to sell Argos to Chinese e-commerce giant JD.com.
On Sunday the supermarket giant confirmed it had “terminated” discussions over a potential sale.
It said talks had collapsed as JD.com’s terms and commitments are “not in the best interests of Sainsbury’s shareholders, colleagues and broader stakeholders”.
It comes just 24 hours after announcing it was seeking a deal that could “accelerate Argos’ transformation”.
Argos is the UK’s second largest general merchandise retailer, with the third most visited retail website in the UK and more than 1,100 collection points.
In a statement on Sunday, Sainsbury’s said: “Following the media speculation on 13 September regarding discussions between J Sainsbury plc (Sainsbury’s) and JD.com Inc (JD.com) about a potential sale of Home Retail Group Limited (Argos), JD.com has communicated that it would now only be prepared to engage on a materially revised set of terms and commitments which are not in the best interests of Sainsbury’s shareholders, colleagues and broader stakeholders.
“Accordingly, Sainsbury’s confirms that it has now terminated discussions with JD.com.”
Asked whether Argos is still up for sale, a Sainsbury’s spokesman said: “We are really focused on delivering a strong future for Argos.”
The statement added: “We are taking focused action to extend range, enhance digital capabilities and improve relevance to grow frequency and spend in Argos whilst delivering further operating model efficiencies.
“Sainsbury’s is committed to delivering the strongest and most successful future for Argos customers and colleagues and our ‘More Argos, more often’ transformation strategy is delivering good progress.”
JD.com entered the e-commerce sector in 2004 and became the first major e-commerce company from China to be listed on the Nasdaq in May 2014, its website states.
It aims to be a leading supply chain-based technology and service provider which integrates “traditional industry features with cutting-edge digital technology and capabilities”.
