Morrisons accepted an improved takeover bid from a US private equity firm that they initially accused of undervaluing them.
The supermarket’s board unanimously accepted a £ 7bn offer from Clayton, Dubilier & Rice (CD&R) after declining a £ 5.5bn offer from the company earlier this year .
The enhanced bid outweighed a £ 6.7bn bid from a group of companies led by rivals CD&R Fortress that had initially been recommended to shareholders.
Now, shareholders have been asked to vote in favor of the takeover of CD&R at a meeting scheduled for early October, although they have been implored by Fortress and its partners to “take no action” as it “considers its options ”.
CD&R has said it is ready to “support Morrisons” building on its “strong heritage” and “grocery retail approach”.
But in June, the company was told by the supermarket’s board that their initial offering had “significantly undervalued Morrisons and its future prospects.”
The regulators of the takeover bids have given them until August 20 to increase their offer or to withdraw.
In a statement released after its new offering, CD&R said the company “recognizes Sir Ken Morrison’s legacy, Morrisons history and culture, and considers this strong heritage to be at the heart of Morrisons and its approach to the retail sale of groceries “.
They added that they “will support Morrisons in pursuing these strengths.”
Morrisons is the fourth largest supermarket chain in the UK with nearly 500 stores and around 110,000 employees. Until the mid-2000s most of its stores were concentrated in the north of England, but it has since spread to the rest of the UK.
CD&R, meanwhile, has been advised by former Tesco boss Sir Terry Leahy for the past 10 years and previously took over UK retailer B&M.
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Source: www.independent.co.uk
This notice was published: 2021-08-19 23:18:57
