Sainsbury has suffered two failed takeover bids in the last seven months.

Qatar Investment Authority (QIA) has dropped its £10.6 billion bid for J Sainsbury, citing the current state of global credit markets and costly demands from its pension fund.

The Qatari fund, Delta Two, still owns a 25% stake in the UK supermarket. It is unclear whether it plans to hold on to its investment, however the fund has confirmed it remains fully supportive of the company’s operational strategy, saying in a statement: “Sainsbury is an excellent company with a strong management team, leading market position and strong long-term growth opportunities.”

This is the second time in seven months Sainsbury has been on the receiving end of a failed takeover bid. Private equity firm CVC Capital Partners withdrew its takeover offer in April, following opposition from the company’s board and the Sainsbury family.

 By Natasha Piscitelli