UK markets open in 1 hour 31 minutes
  • NIKKEI 225

    27,977.57
    +144.28 (+0.52%)
     
  • HANG SENG

    25,745.34
    -446.98 (-1.71%)
     
  • CRUDE OIL

    72.11
    +0.20 (+0.28%)
     
  • GOLD FUTURES

    1,796.40
    -2.80 (-0.16%)
     
  • DOW

    35,144.31
    +82.76 (+0.24%)
     
  • BTC-GBP

    26,886.61
    -1,039.94 (-3.72%)
     
  • CMC Crypto 200

    880.53
    -34.96 (-3.82%)
     
  • ^IXIC

    14,840.71
    +3.72 (+0.03%)
     
  • ^FTAS

    4,025.99
    +0.87 (+0.02%)
     

Morrisons suitor teams up with rival in £6.3bn bid attempt

·2-min read
A Morrisons sign (PA Media)
A Morrisons sign (PA Media)

Private equity firm Apollo Global Management, which confirmed it was considering a bid for Morrisons earlier this month, said it will no longer be making an offer for the supermarket.

Instead, bosses said they are in early discussions with rival PE firm Fortress to team up and become part of its consortium to buy the grocer.

Shares in Morrisons dipped slightly on Tuesday morning on the news that the chances of a three-way bidding war are unlikely.

Fortress is owned by Softbank and made a £6.3 billion offer for the business, which was accepted by the board, and is part of a consortium which also includes the Canada Pension Plan Investment Board and Koch Real Estate Investments, the vehicle of the US billionaire Charles Koch.

Apollo said the discussions “may result in funds managed or advised by Apollo forming part of the investment group led by Fortress for the purposes of the Fortress offer.

Morrisons financials (PA Media)
Morrisons financials (PA Media)

“As a consequence of these discussions, Apollo confirms that it does not intend to make an offer for Morrisons other than as part of the Fortress offer.”

It added: “Apollo notes Fortress’s intentions regarding the Morrisons business and all its stakeholders, as set out in the announcement of the Fortress offer… Should these discussions lead to any transaction, Apollo would be fully supportive of Fortress’s stated intentions regarding Morrisons.”

The takeover battle for the supermarket started last month when New York private equity firm Clayton Dubilier & Rice (CD&R) made a proposed £5.5 billion bid, but this was rejected.

Politicians have raised concerns about the takeover and warned that any new owner could strip assets and reduce the rights of workers.

Morrisons owns the vast majority of its stores’ freeholds and has a large manufacturing supply chain.

But Fortress has stressed it intends to continue operating with the same management team, did not sell any of its freehold or long leasehold properties after it bought Majestic Wines in 2019, and “does not anticipate engaging in any material store sale and leaseback transactions” at Morrisons.

Read More

Fever-Tree profits take a hit from logistics challenges

Boris Johnson faces backlash over plans for Covid vaccine passports in clubs

EasyJet ramping up flight programme as demand recovers

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