Ahead of today's 5pm deadline, Steinhoff backed out of making a bid for Home Retail Group at the last minute, leaving Sainsbury's the likely purchaser or the Argos business. Sainsbury's share prices rose sharply, while Home Retail Group's dropped 6.7%, reports CITY AM.

Sainsbury's made an offer for the business at the start of February, before Steinhoff International issued a rival bid.

Concurrent with its withdrawal, Steinhoff instead agreed to buy UK-based white goods retailer Darty for £673m.

Sainsbury’s subsequently made a cash and shares bid of £1.4b, an offer in line with the one made last month. According to The Guardian, at the time of the repeated offer Sainsbury’s had not been able to secure a recommendation from Home Retail’ Group's board in time for the Takeover Panel’s deadline, due to the last-minute withdrawal of Steinhoff’s offer.