Sainsbury's has submitted a fresh bid for Home Retail iStock

Sainsbury's has submitted a fresh takeover bid for Argos owner Home Retail Group worth £1.3bn ($1.8bn), after its first offer, which was submitted in November 2015, was turned down early in January 2016.

The FTSE 100 said on 2 February that it had placed a new offer, worth the equivalent of 161.3p to the retailer, which represents a 63% premium to Home Retail's share price on 4 January and consists of a £1.1bn offer for Home Retail shares and a further £200m from the separate sale of its Homebase DIY chain.

Under the terms of the offer, Home Retail Group shareholders will own approximately 12% of the combined group , based on the current issued share capital of Sainsbury's and Home Retail Group, Sainsbury's said in a statement.

"The combination of Sainsbury's and Home Retail Group is an attractive proposition for the customers and shareholders of both companies, establishing a platform for long-term value creation," the FTSE 100 group added.

"The combination is an opportunity to bring together two of the UK's leading retail businesses, with complementary product offers, focused on delivering quality products and services at fair prices, through an integrated, multichannel proposition."