Supermarket chain Sainsbury's has made a formal £1.4bn bid for Argos owner Home Retail Group (HRG). In a statement, Sainsbury's chairman David Tyler said: "The UK grocery retail industry is undergoing a period of intense change in customer shopping behaviour and in the competitive environment. "This combination with HRG presents an opportunity to accelerate our strategy, delivering compelling revenue and cost synergies."We will create a multi-product, multi-channel proposition with fast delivery networks that we believe will be very attractive to the customers of both businesses." Sainsbury's cash and shares offer values HRG shares at 172.3p each.