Skip to content
Search
AI Powered
Latest Stories

Bidding war for Morrisons heats up with £7bn offer from US equity group

Bidding war for Morrisons heats up with £7bn offer from US equity group
(Photo by TOLGA AKMEN/AFP via Getty Images)
AFP via Getty Images

In the latest twist in supermarket giant's dramatic takeover battle, Morrisons on Friday (20) has accepted an improved £7 billion takeover bid from US private equity group Clayton, Dubilier & Rice (CD&R), as per latest reports.

Morrisons' board is said to have accepted the offer and said shareholders should vote in favour of the takeover at a meeting due in early October, stated reports, suggesting the company has withdrawn its recommendation for investors to accept a previous £6.7bn takeover deal from a consortium led by rival private equity firm Fortress.


The consortium is now “considering its options” as to whether it returns with another bid, reports said.

Nicholas Hyett, an equity analyst at Hargreaves Lansdown, said that although the new offer has the backing of Morrisons' management, "this might not be the end of the story".

Rival bidder Fortress has urged investors to “hold fire on accepting the deal” and are expected to make a further statement in due course, BBC quoted Hyett in a report.

The new offer comes a week after CD&R was given an extended deadline until Aug 20 afternoon by British regulators to table a bid or walk away. CD&R had originally been turned down by the Morrisons board, saying a potential £5.5bn pound bid significantly undervalued Morrisons and its future prospects.

The news of the new offer and the possibility of a continuation in the bidding war buoyed Morrisons' share price on Friday (20).

Originally a Bradford-based retailer, Morrisons is currently owned by a raft of institutional shareholders, including Silchester International, Columbia, Blackrock and Schroders.

It has almost 500 shops and more than 110,000 staff.

CD&R is a 43-year-old company and is one of the most firmly established investors in the sector. It has been advised by former Tesco chief, Sir Terry Leahy, over the past 10 years, who is said to be heavily involved in its deal with Morrisons. He had also helped CD&R secure a 60 per cent stake in US discount retail group B&M in 2013, as per reports.

More for you

Sainsbury’s local convenience store outlets
Image from Sainsbury's media
Image from Sainsbury's media

Sainsbury’s extends Aldi price-match campaign to 800 convenience stores

Supermarket Sainsbury’s has become the first grocer to extend its Aldi price-match campaign to its 800 local convenience store outlets.

In a bold move by its boss to win back market share from the German discounter, Britain’s second-largest supermarket chain today (4) has added price matches on 200 daily staples — including milk, chicken, bread and vegetable oil — in its local convenience stores.

Keep ReadingShow less
Glasgow retailer retires after serving community for 44 years

iStock image

iStock image

Glasgow retailer retires after serving community for 44 years

A convenience store owner in Glasgow has retired and handed over the keys after serving the community for 44 years.

The retiring shopkeeper couple, Abdul Haq and his wife Hameedah, have run Disqu Blu convenience store in Glasgow since 1980.

Keep ReadingShow less
innocent drinks, Co-op team up to donate portions of fruit and veg to charity

innocent drinks, Co-op team up to donate portions of fruit and veg to charity

innocent drinks, Europe’s leading healthy drinks company, is announcing a new partnership with Alexandra Rose Charity as it advances its mission to help people live well through the delicious goodness of fruits and vegetables.

Government statistics reveal that just one third of adults, and 12 per cent of 11–18-year-olds, are managing to get the recommended “Five a Day”. This is even starker for lower-income families, with the most deprived fifth of adults consuming 37 per cent less fruit and veg than the least deprived, and their children 29 per cent.

Keep ReadingShow less
‘Spooktacular’ store POS drives sales, customer engagement for Nisa retailer NP Group

‘Spooktacular’ store POS drives sales, customer engagement for Nisa retailer NP Group

As the final key retail season of the year approaches, Nisa retailer NP Group is gearing up for Christmas with a renewed focus on store activation and point-of-sale (POS) strategy to drive sales following a successful Halloween.

With seasonal shopping trends in full swing, effective in-store activation and visibility are crucial for smaller retailers to capture customer attention and keep up with larger competitors. Data from Retail Economics shows that UK shoppers spent approximately £10 billion on seasonal products in 2023, with Halloween contributing £650 million alone, marking a steady increase in seasonal shopping over recent years.

Keep ReadingShow less