A consortium comprising private equity group CVC and the Qatar state wealth fund had dropped its plan to bid for UK-based supermarket group J Sainsbury.

According to a Sky News report, CVC Capital Partners partnered in Qatar Investment Authority (QIA) and Canadian property group Brookfieldearlier this year to draw acquisition plans for J Sainsbury.

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The consortium abandoned its takeover plan soon after the chain stated that it planned to buy Home Retail Group, which owns Argos, as it altered the financial dynamics, reported Sky News.

"The consortium abandoned its takeover plan soon after the chain stated that it planned to buy Home Retail Group."

If the takeover had materialised, the firms intended to appoint Archie Norman as chairman of J Sainsbury.

Norman is currently the chairman of ITV and former chairman of Asda.

Qatar Holding initially invested in the supermarket chain through Delta Two, and increased its stake in 2007 before planning a takeover bid of £10.6bn. However, this plan eventually failed.

Qatar Holding still holds a 25.1% stake, making it the largest shareholder of J Sainsbury.