A PYMNTS Company

UK’s Morrisons Agrees To CD&R’s $9.54B Takeover Offer

By  |  August 19, 2021

British supermarket group Morrisons on Thursday, August 19, agreed a takeover offer worth £7.0 billion (SU$9.54 billion) from US private equity group Clayton, Dubilier & Rice, reported Reuters.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Morrisons stated 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, which Morrisons’ board intends to recommend unanimously, gives the supermarket chain an enterprise value of £9.7 billion once its debt is taken into account.

    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.

    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.

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.