Morrison’s accepts £6.3billion takeover bid from US investment firm

BREAKING: Morrison’s accepts £6.3billion takeover bid from US investment firm just two weeks after supermarket turned down offer from private equity group

  • Morrisons shareholders will receive 254 pence a share under terms of the deal
  • The offer exceeds the £5.52billion proposal from a private equity firm on June 19
  • The offer represents a premium of 42 per cent to Morrisons’ closing share price

Morrisons has agreed a takeover offer from a new company owned by funds managed or advised by affiliates of Fortress Investment Group, which values the British supermarket group at £6.3billion.

Under the terms of the deal, Morrisons shareholders will receive 254 pence a share, comprising 252 pence in cash and a 2 pence cash dividend.

The offer exceeds the £5.52billion proposal from US private equity firm Clayton, Dubilier & Rice, which Morrisons rejected on June 19, saying it was far too low.

Morrisons has agreed a takeover offer from a new company owned by funds managed or advised by affiliates of Fortress Investment Group

Morrisons, which trails UK market leader Tesco, Sainsbury’s and Asda in annual sales, said the offer represents a premium of 42 per cent to its closing share price of 178 pence on June 18 – the last business day before CD&R’s proposal.

Shares in Morrisons closed on Friday at 243 pence, valuing the business at £5.8billion.

Fortress is a global investment manager with about £38billion in assets under management as of March.

Morrisons said an initial unsolicited proposal was received from Fortress on May 4 at 220 pence a share. This offer was not made public.

Fortress then made four subsequent proposals before its offer reached a total value of 254 a share on June 5.