​Supermarket chain Sainsbury's has placed a formal bid to purchase Home Retail Group (HRG), which is the owner of the Argos franchise.

This was a late inclusion from Sainsbury's and its actual offer comprises £0.321 for Sainsbury's shares and an added 55 pence cash for each Home Retail Group share, reports Logistics Manager.

Home Retail Group's business has been valued at £1.2 billion after the various bids, and in particular from the last minute offer from Sainsbury's.

It has been speculated that the supermarket chain's bid came as a result of South African retailer Steinhoff's decision not to make an offer of its own.

Sainsbury's final deal will be largely based on the benefit of logistics, and it has said that a partnership would bring together multi-channel capabilities including digital, store and delivery networks.

By having these capabilities, the supermarket would be able to provide product fulfilment to store or to home across a wide range of food and grocery items, as well as other merchandise.

David Tyler, chairman of Sainsbury's, said: "This combination with HRG presents an opportunity to accelerate our strategy, delivering compelling revenue and cost synergies."