Who owns Sainsburys?

runciblespoon

Baldur wrote: »

If they failed 'their' savers, they could kiss goodbye to large chunks of their supermarket business as well.

And? If there was a collapse I wouldn't be surprised if the supermarket business went under too. If the banking arm got too big that the supermarket arm couldn't carry it then the whole lot would go down together (see Iceland). Plus that the cash is probably being used instead of Sainsbury's getting loans on the commercial market - so if there was a run it'd be questionable whether they could get the cash out of their shop building programme or whoever they had lent it to internally.

On the flipside, at least they have some tangible real-world assets as security.

Your contract is with Sainsbury's Bank plc:

Sainsbury's Bank plc authorised and regulated by the Financial Services Authority (FSA). FSA register number 184514. You can check this on the FSA's website or by contacting the FSA on 0845 606 1234. J Sainsburys plc is an appointed representative of Sainsbury's Bank plc.

Sainsbury's Bank plc is a joint venture with 50% of the share capital owned by J Sainsbury plc and 50% owned by the Bank of Scotland plc, a subsidiary of HBOS plc. Sainsbury's Bank plc, St Andrew's Life Assurance plc and St Andrew's Insurance plc are connected companies as the ultimate parent company of St Andrew's Life Assurance plc and St Andrew's Insurance plc also has shares in Sainsbury's Bank plc.

I don't know the legal technicalities but I don't think J Sainsburys plc (the supermarket) would have to take on liabilities for Sainsbury's Bank plc (because in general shareholders' liabilities are limited to their holding, unlike say Lloyds Names used to be). Of course they may wish to do so for public relations reasons, unless they do an Iceland and have no cash for public relations.

So if HBOS collapsed it would be up to Sainsbury's Bank plc to carry the can. Whether they could do that depends on how much cash they have available.

opinions4u

pumpndump wrote: »

Sainsbury's are owned by its shareholders. If HBOS holds half the shares, then it owns half of Sainsburys. If you open an account with Sainsburys, then the name on the front of the passbook or at the top of any contract that you sign will tell you whom you have the contract with. If it is a Sainsburys account, I should think that your contract will be with Sainsburys, even if they are using HBOS facilities.

Sainsburys shareholders, through Sainsburys, own 50% of Sainsbury Bank. They own 100% of Sainsburys supermarkets.

HBOS owns 50% of Sainsburys Bank.

It does not own 50% of Sainsburys supermarket.

If HBOS vanished off the planet (not going to happen - merely a name change to incorporate a black horse), their 50% share of Sainsburys Bank would be sold to the highest bidder (potentially Sainsburys themselves). It's a bank with virtually no mortgage exposure that operates predominantly as an insurance commission earner. The overall savings balances are most likely relatively small too (given their rates!).

pumpndump

opinions4u wrote: »

Sainsburys shareholders, through Sainsburys, own 50% of Sainsbury Bank. They own 100% of Sainsburys supermarkets.

HBOS owns 50% of Sainsburys Bank.

It does not own 50% of Sainsburys supermarket.

If HBOS vanished off the planet (not going to happen - merely a name change to incorporate a black horse), their 50% share of Sainsburys Bank would be sold to the highest bidder (potentially Sainsburys themselves). It's a bank with virtually no mortgage exposure that operates predominantly as an insurance commission earner. The overall savings balances are most likely relatively small too (given their rates!).

Thank you for the rebuke. By Sainsbury's I meant Sainsbury's bank not Sainsbury PLC. I did make this clear.

opinions4u

pumpndump wrote: »

Thank you for the rebuke. By Sainsbury's I meant Sainsbury's bank not Sainsbury PLC. I did make this clear.

Not intended as a rebuke. Apologies if it came across that way. :beer: