The private equity consortium that had been preparing to buy Sainsbury’s has officially pulled out of the running for the retail chain.

CVC Capital Partners, which headed up the consortium, issued a statement to the stock market yesterday declaring in had thrown in the towel after “it became clear that the consortium would be unable to make a proposal that would result in a successful offer”.

The consortium had proposed a bid of 582p a share for the supermarket, but the Sainsbury family, which controls 19 per cent of the company, were holding our for a 600p a share offer.

Sainsbury’s has said it is committed to its ongoing recovery plan. Shares in the retailer closed on Wednesday trading down 2.3 per cent to 526p, after the consortium’s announcement.

News of the end of bid interest in the UK’s third-largest retailer comes just over two months after the consortium revealed its interest in a takeover.

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