New bid accepted as battle for control of Morrisons heats up

By Éilis Cronin in Industry News 20th August 2021

The battle for control of Morrisons is hotting up after the retailer announced it had accepted an improved takeover bid worth £7bn from private equity group Clayton, Dubilier & Rice (CD&R).

The company had previously recommended investors accept a £6.7bn offer from a consortium led by Fortress, another US-based investment group.

Morrisons is the UK’s fourth largest supermarket, operates almost 500 stores and employs more than 110,000 staff.

It has been at the centre of a takeover battle for weeks – with the bidding war pushing the price higher.

In July, Morrisons turned down an offer worth £5.5bn from CD&R saying it “significantly undervalued” the business.

The latest offer, which represents a 60% premium on the retailer’s share price before takeover interest surfaced in June, has been unanimously accepted by the board of Morrisons.

Morrisons chairman Andrew Higginson said the latest offer “represents good value for shareholders while at the same time protecting the fundamental character of Morrisons for all stakeholders”.

However, it remains to be seen whether the new offer is the end of the takeover saga.

Fortress Investment said it noted the announcement of the new bid and “is considering its options in respect of its all-cash offer”.