The private equity firm at the centre of a string of bidding wars for British companies is leading the £1.7bn race to buy the owner of Argos’s store-card operations.

Sky News has learnt that KKR is the frontrunner to buy NewDay Group, which is owned by the buyout firms Cinven and CVC Capital Partners.

KKR is not in exclusive talks, and other parties – said to include Pimco, the asset management giant, KKR, and a Bain Capital-led consortium – remain in contention to acquire NewDay.

Some of the bidders, such as Pimco, have been interested in pursuing a deal to buy NewDay’s consumer loan book rather than the company as a whole; others including KKR are understood to be interested in acquiring the whole business, but potentially with its existing shareholders remaining invested for a period of time.

NewDay, which took ownership of Argos’s store card business last year in a £720m deal with J Sainsbury, the supermarket giant, has been exploring a sale or stock market listing for months.

Last November, Sky News reported that NewDay’s owners were lining up investment bankers at Barclays to advise on a process.

NewDay is one of Britain’s biggest privately held providers of consumer credit services, with about four million customers.

Last year, it reported £213m of underlying pre-tax profit, with new customer acquisitions up 36%.

It also launched a technology and lending partnership with Lloyds Banking Group, and launched the pilot of a technology partnership with Debenhams Group in the final quarter of last year.

KKR has become engaged in bidding wars in recent months for Assura, the GP surgeries landlord, and testing equipment provider Spectris – both of which are listed on the London stock market.

NewDay, KKR and CVC declined to comment.

The health secretary has told Sky News the government’s plans to tackle obesity by introducing a health food standard for supermarkets are a “world-first approach” and not “nanny statism”.

As part of an initiative aimed at taking some pressure off the NHS, food retailers and manufacturers will “make the healthy choice the easy choice” for customers in the UK, which has the third-highest adult obesity levels in Europe.

Supermarkets will be required to report sales data and those that fail to hit targets could face financial penalties, suggested Nesta, the innovation agency which initially developed the policy.

Speaking on Sunday Morning With Trevor Phillips, Wes Streeting said: “Instead of traditional nanny statism, where we regulate more heavily on price or marketing on what’s sold, we’re taking a world-first approach, which is working with supermarkets using data they already collect about the nutritional value of their shopping baskets and shopping trolleys, the average shop.

“We’re going to work with them to reduce the amount of unhealthy food in trolleys and baskets by setting targets on the healthy value of your shopping trolleys and baskets.”

He said if obese people cut their calorie intake “by about 216 calories a day – the equivalent of a bottle of fizzy coke, we’d halve obesity”.

“We’ve got one in five kids leaving primary school with obesity, it’s costing the NHS £11bn a year, and obesity has doubled since the 1990s,” he added.

He also said: “If we reduce calorie intake in this country by just 50 calories a day, that would lift 340,000 children out of obesity.”

Mr Streeting said supermarkets will decide through the combination of where they put their products, how they do price promotions, and what products they choose to put on the shelves.

“They will work with us to make sure that we nudge people in the right direction, without any of us even noticing,” he added.

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Businesses will be free to choose how to implement the new healthy food standard, which aims to make their customers’ average shopping healthier.

Measures could include reformulating products and tweaking recipes, changing shop layouts, offering discounts on healthy foods, or changing loyalty schemes to promote healthier options.

Obesity is one of the root causes of diabetes, heart disease and cancer.

The new scheme, announced on Sunday by the Department for Health and Social Care, is part of the forthcoming 10-Year Health Plan, through which the government is seeking to shift from sickness to prevention to alleviate the burden on the NHS.

An ‘important step’

Michelle Mitchell, Cancer Research UK’s chief executive, said: “Businesses can play a major role in supporting people to make healthy choices, and this important step could help to reduce rising obesity rates.

“Being overweight or obese is the second biggest cause of cancer in the UK, and is linked with 13 different types of the disease.

“The UK government must introduce further bold preventative policies in both the upcoming 10-year Health Plan and National Cancer Plan, so that more lives can be saved from cancer.”

Some of the UK’s biggest supermarkets appear to have reacted positively to plans for a new standard of healthy food, with Ken Murphy, Tesco Group CEO, saying: “All food businesses have a critical part to play in providing good quality, affordable and healthy food.

“At Tesco, we have measured and published our own healthier food sales for a number of years now – we believe it is key to more evidence-led policy and better-targeted health interventions.

“That’s why we have called for mandatory reporting for all supermarkets and major food businesses and why we welcome the government’s announcement on this.

“We look forward to working with them on the detail of the Healthy Food Standard and its implementation by all relevant food businesses.”

Simon Roberts, chief executive of Sainsbury’s, said: “We’re passionate about making good food joyful, accessible and affordable for everyone and have been championing the need for mandatory health reporting, across the food industry for many years.

“Today’s announcement from government is an important and positive step forward in helping the nation to eat well.

“We need a level playing field across the entirety of our food sector for these actions to have a real and lasting impact.”

A healthy food standard will be introduced for supermarkets and other retailers as part of government plans to tackle obesity levels in the UK.

As part of a government initiative aimed at taking some pressure off the NHS, food retailers and manufacturers will “make the healthy choice the easy choice” for customers in a country with the third highest adult obesity levels in Europe.

Supermarkets will be required to report sales data and those that fail to hit targets could face financial penalties, Nesta, the innovation agency which initially developed the policy, suggested.

Businesses will be free to choose how to implement the new healthy food standard, which aims to make their customers’ average shopping healthier.

Measures could include reformulating products and tweaking recipes, changing shop layouts, offering discounts on healthy foods, or changing loyalty schemes to promote healthier options.

Obesity is one of the root causes of diabetes, heart disease and cancer.

The new scheme, announced on Sunday by the Department for Health and Social Care, is part of the forthcoming 10 Year Health Plan, through which the government is seeking to shift from sickness to prevention to alleviate the burden on the NHS.

Health Secretary Wes Streeting said: “Obesity has doubled since the 1990s and costs our NHS £11bn a year, triple the budget for ambulance services. Unless we curb the rising tide of cost and demand, the NHS risks becoming unsustainable.

“The good news is that it only takes a small change to make a big difference. If everyone who is overweight reduced their calorie intake by around 200 calories a day – the equivalent of a bottle of fizzy drink – obesity would be halved.

“This government’s ambition for kids today is for them to be part of the healthiest generation of children ever.

“That is within our grasp. With the smart steps we’re taking today, we can give every child a healthy start to life.”

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Environment Secretary Steve Reed said: “It is vital for the nation that the food industry delivers healthy food, that is available, affordable and appealing.”

An ‘important step’

Michelle Mitchell, Cancer Research UK’s chief executive, said: “Businesses can play a major role in supporting people to make healthy choices, and this important step could help to reduce rising obesity rates.

“Being overweight or obese is the second biggest cause of cancer in the UK, and is linked with 13 different types of the disease.

“The UK government must introduce further bold preventative policies in both the upcoming 10-year health plan and National Cancer Plan, so that more lives can be saved from cancer.”

Some of the UK’s biggest supermarkets appear to have reacted positively to plans for a new standard of healthy food, with Ken Murphy, Tesco Group CEO, saying: “All food businesses have a critical part to play in providing good quality, affordable and healthy food.

“At Tesco, we have measured and published our own healthier food sales for a number of years now – we believe it is key to more evidence-led policy and better-targeted health interventions.

“That’s why we have called for mandatory reporting for all supermarkets and major food businesses and why we welcome the government’s announcement on this.

“We look forward to working with them on the detail of the Healthy Food Standard and its implementation by all relevant food businesses.”

Simon Roberts, chief executive of Sainsbury’s, said: “We’re passionate about making good food joyful, accessible and affordable for everyone and have been championing the need for mandatory health reporting, across the food industry for many years.

“Today’s announcement from government is an important and positive step forward in helping the nation to eat well.

“We need a level playing field across the entirety of our food sector for these actions to have a real and lasting impact.”

Health Secretary Wes Streeting will be appearing on today’s Sunday Morning with Trevor Phillips show – watch on Sky News from 8.30am.