Steinhoff's Rival Bid Threatens Sainsbury Attempt To Buy Home Retail

Sainsbury needs to reconsider its £1.3-billion bid to acquire Home Retail following South Africa-based Steinhoff’s £1.42 billion all-cash rival bid for the retailer. Sainsbury could match Steinhoff’s offer; however, the South African company has more cash to finance its bid in case of a bidding war with Sainsbury. Also, Sainsbury has a net debt of £1.5 billion, making it one of the most heavily leveraged grocery chains in the UK.