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		</div><p>Supermarket Sainsbury&#8217;s could see its takeover bid for Argos owner Home Retail Group derailed after retailer Steinhoff pitched a rival offer.</p>
<p>Home Retail Group confirmed that it had received a &#8220;possible cash offer&#8221; from the South African-based furniture retailer valuing the company at 175 pence per share.</p>
<p>The announcement comes after Sainsbury&#8217;s vowed to create a &#8221;world-leading&#8221; retailer bigger than rivals John Lewis and Amazon UK when it tabled an improved £1.3 billion offer for Home Retail Group earlier this month.</p>
<p>The supermarket giant had proposed a cash-and-shares deal &#8211; valuing Home Retail Group at 161.3 pence per share &#8211; which would create the UK&#8217;s largest non-food store worth £6 billion.<br />
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<p>Saisnbury&#8217;s declined to comment on the rival bid. It will now have to make a firm offer for Home Retail Group by Tuesday Ferbuary 23.</p>
<p>Home Retail Group said it was reviewing the approach with its advisers, but added that there was no guarantee Steinhoff would make a firm offer.</p>
<p>Steinhoff &#8211; which owns UK furniture firm Harveys &#8211; is listed on the Frankfurt and South African stock markets.</p>
<p>It now must make a firm offer for Home Retail Group by Friday March 18.<br />
Steinhoff said it was making the announcement so Home Retail Group shareholders were &#8220;fully informed&#8221; as they made a decision about the offer from Sainsbury&#8217;s.</p>
<p>It also confirmed that it supported the £340 million sale of Home Retail Group&#8217;s DIY chain Homebase to Australian business Wesfarmers.</p>
<p>Steinhoff&#8217;s takeover approach comes in bigger than Sainsbury&#8217;s at £1.4 billion.<br />
Sainsbury&#8217;s made a second approach for Home Retail Group on February 2 after its initial offer of £1 billion was rebuffed in November.</p>
<p>The supermarket&#8217;s chief executive Mike Coupe said last month that the combination of the two companies would create the &#8221;food and non-food retailer of choice&#8221; with 2,000 combined stores.</p>
<p>Sainsbury&#8217;s stated that the combination of the two companies would trigger cost savings of about £120 million in the third full year after the deal is complete.</p>
<p>It also estimated that around half the savings &#8211; £60 million &#8211; would come from relocating Argos stores into Sainsbury&#8217;s supermarkets as concessions, as well as launching new Argos concessions and expanding Sainsbury&#8217;s click and collect service.</p>
<p>The supermarket said previously that it could shut a raft of Argos stores and relocate them within its supermarkets if the deal was given the go-ahead.</p>
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