Qatar Cedes Largest Sainsburys Stake to Czech Billionaire Daniel Kretinsky

Daniel Kretinsky, the Czech industrialist known as the Czech Sphinx, has emerged as the largest shareholder in Sainsbury’s after the Qatar Investment Authority agreed to sell a significant portion of its holding. The Qatari sovereign wealth fund will offload up to 83.6 million shares in the FTSE 100 supermarket group, reducing its holding from 10.5 per cent to below 7 per cent, while Kretinsky’s investment vehicle Vesa surpasses 10 per cent ownership.

The sale marks a turning point in Sainsbury’s ownership structure, with Kretinsky now overtaking Qatar after almost two decades of Qatari primacy in the share register. Shares in Sainsbury’s fell over 4 per cent following the announcement, closing at 312.5p and giving the supermarket a market capitalisation of around £7.4 billion. The move reflects evolving strategies within the competitive British supermarket sector, where loyalty discounts, robust food sales, and strong profit forecasts have bolstered Sainsbury’s performance despite pressure from discounters Aldi and Lidl.

Sainsbury’s raised its annual profit guidance to more than £1 billion in September on the back of resilient food sales. For the six months to September, underlying operating profits grew to £504 million, surpassing forecasts. The retailer now holds about 15.7 per cent of the British grocery market, trailing only Tesco, and operates more than 1,475 stores under various banners, including Tu Clothing, Habitat, and Argos.

Other prominent shareholders in Sainsbury’s include BlackRock with over 7 per cent and Bestway Group, chaired by Sir Anwar Pervez, whose interests range from wholesale to real estate. The Qatar Investment Authority, having once controlled as much as 25 per cent of Sainsbury’s, has been reducing its stake since 2021 as the share price recovered. The fund’s UK interests encompass major infrastructure and luxury property, including joint ownership of Heathrow airport, Canary Wharf Group, and London’s Shard skyscraper, as well as the acquisition of Harrods in 2010 for approximately £1.5 billion.

Sainsbury’s has faced headwinds in non-food sectors, highlighted by its decision to halt negotiations with Chinese retailer JD.com over the potential sale of Argos. The retailer remains one of the most shorted shares in the UK as competition intensifies and consumer spending stays subdued.

Following the completion of the share placing, the remaining Qatari stake in Sainsbury’s is subject to a 90-day lock-up. The Qatari retreat signals the end of an era for Sainsbury’s shareholder base. Meanwhile, Daniel Kretinsky extends his reach across European commerce, adding to his wide-ranging portfolio in retail, media, and postal services.