Commenting on the development, a Sainsbury spokesman said, "J Sainsbury’s notes the press speculation concerning Sainsbury’s Bank and confirms it is in advanced negotiations with Lloyds Banking Group to take full ownership of Sainsbury’s Bank. A further announcement will be made in due course."
Meanwhile, persons familiar with the matter were quoted by media sources as saying that a deal might be announced along with its full-year results on 8 May.
It is expected that the company will take over the remaining 50% stake in the JV, which was launched 16 years ago by J Sainsbury and the Bank of Scotland in February 1997.
Financial terms of the transaction remained undisclosed, however it is likely that the sale may be priced high and will enable the retailer to boost the sale of its financial products to 23 million customers.
The bank offers insurance, loans and savings products to customers and the supermarket plans to attract more customers using Nectar loyalty card as well as others schemes.
The deal is similar to the one inked by supermarket chain Tesco five years ago in 2008, to acquir Royal Bank of Scotland’s stake in Tesco Bank for £950m.
