UK’s Morrisons agrees to raised $9.3 billion offer from Fortress-led group


British supermarket Morrisons has agreed an improved takeover offer worth 6.7 billion pounds ($9.3 billion) from a consortium led by Fortress Investment Group, but wants a rival private equity suitor to be given more time to make a counter bid.

Morrisons said on Friday its board had unanimously recommended Softbank-owned Fortress’ raised offer, comprising 270 pence per Morrisons share plus a 2 pence a share special dividend.

However, it later said U.S. private equity group Clayton, Dubilier & Rice (CD&R) had asked for more time to consider a counter offer.

Morrisons and CD&R have asked Britain’s Takeover Panel, which regulates takeovers, to extend an Aug. 9 deadline for CD&R to clarify its intentions.

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This may help answer Carmen Gomez's question in the Gibraltar Panorama:
Is Morrison’s for the chop?

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Wednesday, October 13, 2021 - 08:58
People in Gibraltar, who enjoy buying at Morrison’s, are keeping a close watch at what happens after Morrison’s takeover auction battle ended with £7bn bid from US private equity giant Clayton, Dubilier & Rice outbidding Fortress.

The stock market’s Takeover Panel said Fortress offered 286p per Morrison’s ordinary share, while CD&R offered 287p – meaning its bid amounts to an offer of almost £7 billion.
The final offer for the supermarket will now be voted on by shareholders on October 19.
The takeover saga has dragged on since CD&R first made an approach for the Bradford-based grocer back in June, leading to speculation the sector was ripe for private equity takeovers.
Following the initial bid, rival Softbank-backed Fortress made an offer of £6.3 billion in July.

Morrisons Sold to Clayton, Dubilier & Rice for $9.4 in Frenzied Bidding War

A consortium led by U.S. buyout firm Clayton, Dubilier & Rice is set to win the bidding war for U.K. grocery chain Wm Morrison Supermarkets PLC, an almost $9.4 billion bet that highlights the extreme lengths private-equity firms are willing to go amid a global deal frenzy.

The CD&R-led group emerged as the frontrunner after outbidding SoftBank Group Corp.’s Fortress Investment Group LLC and its partners in an unusual one-day auction held Saturday to decide the victor. The U.K. Takeover Panel, a government arm that oversees dealmaking in the country, held the contest to end a monthslong standoff fueled by increased offers by each side.

Background -

Morrisons Agrees To CD&R's Offer, As Battle For UK Grocer Continues