UK retailer Morrisons has been bought by US private equity firm Clayton, Dubilier & Rice (CD&R) at auction for £9.97 billion, following a 4-month tussle for the supermarket with Majestic’s owner.
The high stakes auction is the culmination of a four-month long takeover battle for the UK’s fourth-largest supermarket, in which the US private equity group successfully out-bid Majestic’s owner, Fortress Investment Group.
The US private equity group sparked the battle in June with an offer of 230p-per-share, valuing the grocer at around £5.5bn. The offer was refused and Fortress became the prefered bidder with an offer of £6.3m. However, in August CD&R returned to the table with a £7 billion offer, which the supermarket’s board of directors accepted , o
In the end, the winning bid outstripped the previous offer by 2p a share (287p in total) – just 1p more per share than SoftBank-owned Fortress Investment’s bid, it was announced at the weekend.
According to the Financial Times, the total transaction value is around 11.8 times the group’s underlying profit for the year to January 2021.
Morrisons’s chairman Andrew Higginson previously said the offer represented “excellent value for shareholders” but also protected “the fundamental character of Morrisons for all stakeholders”.
CD&R was advised by Sir Terry Leahy, the former Tesco chief executive who said the company continued to believe that Morrisons “is an excellent business, with a strong management team, a clear strategy, and good prospects.”
© 2021 Union Press Ltd | Wigglesworth House, Fourth Floor, 69 Southwark Bridge Road, London, SE1 9HH, UK Tel: +44 (0)20 7803 2420
Registered in England and Wales No. 03606414
Site by Redwire
It looks like you’re in Asia, would you like to be redirected to the Drinks Business Asia edition?
Yes, take me to the Asia edition No
We are using cookies to give you the best experience on our website.
You can find out more about which cookies we are using or switch them off in .
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.