Sainsburys has emerged as a potential rival to former Wyevale chief executive Nicholas Marshall in his reported interest in making a bid for the Homebase business.

The grocery chain said this week it had made an offer in November (later rejected) for the Home Retail Group, owners of Homebase and Argos. This was interpreted as a bid to pre-empt a move by Amazon on the UK grocery sector. Amazon launched a UK grocery delivery service at the end of the year.

Sainsbury’s, which, ironically, sold Homebase in 2000, is believed to be primarily interested in the Argos business, following the announcement in October of the UK high street’s first same-day home delivery service.

After its cash and shares approach to Home Retail was rejected because, the owners said, it undervalued the business and its long-term prospects, Sainsbury’s is now considering its position. Under UK takeover rules, it will need to make a formal approach by 5pm on 2 February or walk away.

Marshall (above) told the Financial Times last month that he was in discussions with private equity groups about a possible bid for Homebase. He was not available for comment as this issue was being prepared.

Sainsburys said a tie-up would create an attractively located network of stores with a strong presence in food and grocery, clothing, homewares, toys, stationery, electricals, furniture and other general merchandise, but a formal offer was “not a certainty”.