×
71 795
Fashion Jobs
NORDSTROM
Asset Protection Agent - Cherry Hill
Permanent · Cherry Hill
NORDSTROM
Asset Protection Agent - Tysons Corner
Permanent · McLean
NORDSTROM
Asset Protection - Agent - Town Center at Boca Raton
Permanent · Boca Raton
NORDSTROM
Retail Stock - Tempe Marketplace Rack
Permanent · Tempe
NORDSTROM
Operations Manager_ Returns_ Sat-Mon 6am-6pm - Elizabethtown, PA
Permanent · Elizabethtown
NORDSTROM
Retail Stock - Winrock Town Center Rack
Permanent · Albuquerque
NORDSTROM
Retail Stock & Fulfillment - Houston Galleria
Permanent · Houston
NORDSTROM
Retail Stock - Christiana Fashion Center Rack
Permanent · Newark
GAP
Assistant Manager, Talent Operations - San Marcos Premium
Permanent · San Marcos
MACY'S
Asset Protection Detective, Menlo Park - Full Time
Permanent · Edison
MACY'S
Manager, Merchandise Execution
Permanent · East Wenatchee
JCPENNEY CAREERS 2018
Product Manager - Customer Service Application & Associate Fulfillment Tools
Permanent · Plano
ROSS STORES
IT Manager i (Supply Chain)
Permanent · Shafter
ROSS STORES
IT Manager i (Supply Chain)
Permanent · Brookshire
ROSS STORES
Purchasing Supervisor
Permanent · Dublin
ROSS STORES
Store Protection Specialist
Permanent · Holmes
ROSS STORES
Store Protection Specialist
Permanent · Medford
ROSS STORES
District Manager
Permanent · Bakersfield
ULTA BEAUTY, INC.
Retail Operations Manager
Permanent · San Leandro
UNIQLO
Human Resources Coordinator - Emeryville, ca
Permanent · Emeryville
UNIQLO
Loss Prevention Supervisor- Westfield Valley Fair Mall
Permanent · Santa Clara
UNIQLO
Loss Prevention Agent (Full-Time) - Santa Monica Place
Permanent · Santa Monica
By
Reuters
Published
Aug 20, 2021
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Morrisons agrees to CD&R's £7 billion takeover offer

By
Reuters
Published
Aug 20, 2021

British supermarket and general merchandise retailer Morrisons has agreed a takeover offer worth £7 billion ($9.54 billion) from US private equity group Clayton, Dubilier & Rice (CD&R), dropping its recommendation of a lower bid from a consortium led by Fortress Investment Group.


Reuters



Morrisons, which sells the Nutmeg supermarket clothing range, said CD&R’s offer is worth 285 pence a share, trumping a 272 pence a share offer, worth £6.7 billion, from the consortium led by Softbank-owned Fortress.

CD&R’s offer gives the supermarket chain an enterprise value of £9.7 billion once debt is included. Morrisons’ board intends to recommend it unanimously.

The battle for Britain’s fourth-largest grocer after Tesco, Sainsbury’s and Asda, is the most high-profile looming takeover amid a raft of bids and counter bids, reflecting private equity’s appetite for UK Plc.

CD&R’s agreed bid represents a 60% premium to Morrisons’ share price before takeover interest emerged in mid-June.

Morrisons’ shares closed on Thursday at 279.2 pence, indicating investors expected a higher offer.

CD&R, which has former Tesco boss Terry Leahy as a senior adviser, had a £5.52 billion proposal rejected by Morrisons on June 17.

Morrisons subsequently recommended a bid from Fortress worth £6.3 billion, which was then raised after major shareholders, including Silchester, M&G and Hambro, indicated they wanted more.

CD&R has committed to retain Morrisons’ existing management team led by CEO David Potts, and execute its strategy. It said material store sale and leaseback transactions are not planned.

“The Morrisons board believes that the offer from CD&R represents good value for shareholders while at the same time protecting the fundamental character of Morrisons for all stakeholders,” said Chairman Andrew Higginson.

Potts, Higginson and Morrisons’ chief operating officer Trevor Strain all worked with Leahy at Tesco.

Leahy said: “CD&R is delighted to have the opportunity to support the management of Morrisons in executing their strategy to grow and develop the business.”
CD&R’s current investments include Motor Fuel Group (MFG), which operates 918 fuel forecourts in the UK.

With Morrisons owning 339 fuel forecourts, CD&R is targeting a partnership to develop Morrisons’ wholesale business and convenience store portfolio.

However, the forecourt overlap will likely face scrutiny from Britain’s competition regulator.

Morrisons shareholders will vote on CD&R’s offer at meetings expected around the week starting October 4. 

Under British takeover rules, Fortress could still come back with a higher offer. Fortress said it was “considering its options” and urged shareholders to take no action.

Analysts have speculated that Amazon, which has a partnership deal with Morrisons, could still enter the fray, though most believe that if it was interested, it would have done so by now.

© Thomson Reuters 2022 All rights reserved.