(Yicai) Sept. 15 -- British supermarket chain J Sainsbury has called off negotiations with JD.Com over the potential sale of its general retail unit Argos to the Chinese e-commerce giant, just a day after publicly confirming the talks.

JD.Com proposed materially revised terms to the deal that were “not in the best interests of Sainsbury’s shareholders, colleagues and broader stakeholders,” the London-based company said yesterday after terminating the discussions.

“A transaction with JD.Com would accelerate Argos’ transformation,” Sainsbury’s had said on Sept. 13, adding that “JD.Com would bring world-class retail, technology and logistics expertise and invest to drive Argos’ growth and further transform the customer experience.”

JD.Com has made several attempts to expand into the UK market recently. In March last year, it withdrew from talks to buy UK electrical goods chain Currys, and in April this year it launched a supermarket pilot in the country called Joybuy. It has also been expanding in other European countries including France, Poland, and Germany.

Argos is the UK’s second-largest general merchandise retailer, operating more than 1,100 collection points across the country, and runs its third most-visited retail website.

Sainsbury’s said it remains committed to strengthening Argos’ position in the UK market, and has made progress with its More Argos, More Often transformation strategy, which focuses on expanding product range and enhancing digital capabilities.

Sainsbury’s also said Argos’ performance over the summer had met expectations, partly thanks to good weather. Sales and profitability were stronger in the first half than in the same period last year, it noted.

Editor: Tom Litting