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LONDON -- After months of negotiations, Qatari investment fund Delta Two has opted out of its $22 billion bid for J Sainsbury’s, the UK’s third-largest supermarket.
The investment firm said that to continue with the bid would not be in the best interests of its stakeholders, according to press reports.
Delta Two would have had to heavily invest into the supermarket company’s under-resourced pension fund.
This was the second takeover attempt for Sainsbury’s this year. The retailer fended off a $20.6 billion bid from CVC Capital Partners earlier this year.
Sainsbury’s is in an attractive takeover target because of its $17.6 billion property portfolio and because regulators will not allow mergers between the top UK supermarket chains, according to reports.
Delta Two has not said if it will sell its 25 percent of Sainsbury's shares now the deal is off. The Sainsbury family holds an 18 percent stake in the company.