The Competition and Markets Authority (CMA), has announced that it is to investigate Sainsbury’s proposed £1.4 billion takeover of Argos.  

The initial investigation will take place over the next two weeks, whilst the watchdog decides whether a full inquiry is needed. Even if given the green light on the buyout, Sainsbury’s may have to close more stores than the 200 it has already warned of.

The announcement is expected to delay the acquisition, which is due to take place later in the summer and, if successful, will create a £6 billion business, taking the group into direct competition with the likes of Marks & Spencer and John Lewis.

"We are pleased that the CMA review process into Sainsbury’s proposed offer to buy Home Retail Group is progressing" said Sainsbury's.

"The combination of both businesses will create a multi-product, multi-channel proposition with fast delivery networks, benefiting customers by accelerating our strategy to give them what they want, where and when they want it.

"We look forward to the successful completion of the deal”.