UK-based supermarket chain Sainsbury’s proposed £1.4bn acquisition of Home Retail Group (HRG) has received approval from the Competition and Markets Authority (CMA), a government body responsible for strengthening business competition.
The approval follows CMA's Phase I investigation into the much-anticipated deal.
The acquisition is expected to expand Sainsbury's product range and minimise its dependency on the grocery market, where there is a fierce competition.
Sainsbury's plans to include HRG-owned Argos stores into its supermarkets by adding its own range of homeware and other non-food items.
The acquisition remains subject to approval by the Getzner Werkstoffe and HRG shareholders.
The chain recently announced plans to introduce same-day delivery service at its stores by the end the year.
The proposed service will be initially trialled at three of its stores, with plans to expand it to 30 outlets.
Sainsbury’s also aims to open a new online fulfillment centre in Bromley-by-Bow, East London, later this year, creating 900 jobs
The proposed 185,000ft2 centre will cater to the growing demand in the city for Sainsbury’s online groceries service.