J Sainsbury has terminated discussions with Chinese e-commerce firm JD.com over a potential sale of its Argos general merchandise business, the British supermarket group announced Monday.
The company said it ended the talks because JD.com was only prepared to proceed on what it called "a materially revised set of terms and commitments."
According to Sainsbury's, the new terms were "not in the best interests of Sainsbury's shareholders, colleagues and broader stakeholders."
The statement followed media speculation last week about a potential deal for Argos, which the company described as the U.K.'s second-largest general merchandise retailer.
Sainsbury's said it remains committed to its transformation strategy for the business, noting that Argos traded in line with expectations over the summer with stronger first-half sales and profitability than the prior year.
The company also reiterated its financial outlook for the 2025/26 fiscal year.
It continues to expect to deliver retail underlying operating profit of around 1 billion British Pounds and retail free cash flow of more than 500 million British Pounds, the company said.
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