Sainsbury has sold its US business, Shaw's Supermarkets, to rival grocer Albertson's for $2.5bn.

Following completion of the sale, Sainsbury said it intended to return 35p per share to
shareholders - about £680m.

Sainsbury group chief executive, Sir Peter Davis, said the balance of the sale proceeds would be re-invested in growing its UK business.

Shaw's operates 202 stores in the New England states and completion of the sale to Albertson's is expected by early May.