Sainsbury’s largest shareholder, the Qatar Investment Authority (QIA), had reportedly teamed up with CVC Capital Partners and Canadian property group Brookfield with a view to making a £6bn bid for the supermarket chain earlier this year.

According to Sky News, the consortium began working on their offer last autumn and were at an advanced stage in their planning having received formal approval from the City’s Takeover Panel. Sainsbury’ share price fell heavily last year and CVC, Brookfield and the QIA regarded the business as being “significantly undervalued”. 

It is understood that Archie Norman, the chairman of ITV and a former chairman of Asda, had been lined up by the bidders as a potential chairman of Sainsbury’s if the takeover had gone ahead. 

However, Sky News said the consortium abandoned its plan to approach the Sainsbury’s board shortly after the group confirmed that it intended to make an offer for the Home Retail Group. Sainsbury’s share has risen significantly since its offer for the owner of Argos and closed at almost 285p on Friday, compared with lows of around 220p last September. 

All parties involved have yet to comment on the report.