UK markets closed
  • FTSE 100

    7,027.58
    +59.28 (+0.85%)
     
  • FTSE 250

    22,883.39
    +206.11 (+0.91%)
     
  • AIM

    1,232.54
    +4.45 (+0.36%)
     
  • GBP/EUR

    1.1675
    -0.0013 (-0.11%)
     
  • GBP/USD

    1.3754
    -0.0013 (-0.10%)
     
  • BTC-GBP

    24,544.70
    +703.57 (+2.95%)
     
  • CMC Crypto 200

    786.33
    -7.40 (-0.93%)
     
  • S&P 500

    4,411.79
    +44.31 (+1.01%)
     
  • DOW

    35,061.55
    +238.20 (+0.68%)
     
  • CRUDE OIL

    72.17
    +0.26 (+0.36%)
     
  • GOLD FUTURES

    1,802.10
    -3.30 (-0.18%)
     
  • NIKKEI 225

    27,548.00
    +159.80 (+0.58%)
     
  • HANG SENG

    27,321.98
    -401.86 (-1.45%)
     
  • DAX

    15,669.29
    +154.75 (+1.00%)
     
  • CAC 40

    6,568.82
    +87.23 (+1.35%)
     

Morrisons rejects conditional £5.5 billion takeover proposal

·1-min read

Morrisons has rejected a £5.5 billion takeover bid from a private equity firm, believing it would have “significantly undervalued” the company.

Clayton, Dubilier & Rice (CD&R) earlier said it noted the press speculation regarding a potential transaction involving Morrisons and confirmed that it was “considering a possible cash offer”.

CD&R, which has until July 17 to announce a firm intention to make an offer under UK takeover rules, added in a statement that there can be “no certainty an offer will be made”.

Morrisons said it rejected a conditional cash offer from CD&R of 230 pence per share – which amounts to just over £5.5 billion.

In a statement, the supermarket chain said: “The board of Morrisons evaluated the conditional proposal together with its financial adviser, Rothschild & Co, and unanimously concluded that the conditional proposal significantly undervalued Morrisons and its future prospects.

“Accordingly, the board rejected the conditional proposal on 17 June 2021.”

Last month, Morrisons said sales in the 14 weeks to May 9 grew 2.7% on a like-for-like basis, excluding fuel, including a 113% jump in online sales.

But before the easing of lockdown, the supermarket said it had to spend an extra £27 million in Covid-19 costs during the past three months to cover for staff absences and store marshals.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting