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Morrisons accepts £ 6.3bn takeover bid from consortium pledging to be ‘good stewards’ of the chain | Economic news

Supermarket giant Morrisons has accepted an offer to take over a consortium in a deal worth £ 6.3 billion.

The movement follows the rejection of an earlier £ 5.5 billion bid from one of the world’s largest buyout firms, Clayton Dubilier & Rice (CD&R), which the grocery chain says “significantly undervalues” the company.

Under the terms of the agreement with a group consisting of Fortress Investment Group, the Canada Pension Plan Investment Board and Koch Real Estate Investments, Morrisons shareholders will receive 254 pence per share.

Shopping trolleys are parked in a Morrisons supermarket in south London
Morrisons is the UK’s fourth largest supermarket company

Chairman Andrew Higginson said the board believes the offer “represents a fair and recommendable price to shareholders that recognizes Morrisons’ future prospects.”

The directors recommend “unanimously” that the shareholders vote in favor of the transaction.

Mr Higginson added, “Morrisons is an exceptional company and our performance throughout the pandemic has further improved our position and allowed us to begin discussions with Fortress from a hard-won position of strength.

“We have taken a very careful look at Fortress’s approach, its plans for the business and its overall suitability as the owner of a single UK manufacturer and trader with over 110,000 colleagues and a significant role in food production and l British agriculture.

“It is clear to us that Fortress has a full understanding and appreciation of the fundamental character of Morrisons.”

Noting that all of the consortium members had “a strong track record and a long-term approach to investing,” Mr. Higginson said, “They support our strategy, management and people.

“Morrisons has a rich history and unique culture and I have no doubts that with the long-term support of Fortress, the business will continue to thrive in the future.

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This notice was published: 2021-07-03 06:39:00

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