CD&R Now Owns Morrisons following a Successful Bid
As per the latest reports, the firm Clayton, Dubilier & Rice (CD&R) has confirmed that it has successfully landed a bidding deal with Morrisons. The private equity firm has confirmed that it has successfully acquired Morrisons after landing a successful bid for the company.
CD&R has confirmed that it managed to finalize the deal at a bidding price of £7 billion, which translates to $9.5 billion. CD&R is a prominent private equity firm that is based in the United States. Following the successful deal, CD&R has successfully acquired Morrisons. Morrisons is currently the fourth largest chain in the world that is a famous supermarket group.
The Takeover Panel has provided more details around the bidding deal that has taken place between CD&R and Morrisons. The M&A is reportedly governed by the Takeover Panel that is based in the United Kingdom. It was the Takeover Panel that proceeded with the auction process between CD&R and Morrisons.
The Takeover Panel has confirmed that an offer of 287 pence per share was made by CD&R for the acquisition of Morrisons. On the other hand, another company had made an attempt to get its hands on Morrisons.
The other company making the effort of acquiring Morrisons was Fortress Investment Group. Fortress Investment Group is reportedly owned by Softbank. The company had reportedly made an attempt of placing a bid of 286 pence per share. However, CD&R took the lead and placed a bit worth 287 pence per share for the acquisition of Morrisons.
With the acquisition of Morrisons, CD&R has finally made a comeback with a huge blast in the grocery sector of the United Kingdom. It has been revealed that after the acquisition, Terry Leahy will be leading Morrisons, who was formerly the CEO at Tesco, the largest supermarket chain in the United Kingdom.
The board at Morrison has revealed that CD&R successfully offered them a bid that was higher than the recommendation the board members had given back in August of 2021.
Following the successful bid, the board members are going to have a meeting with the shareholders at Morrisons. These shareholders will be the ones with major shares in the company, making up for a high stake.
While at the meeting, the board members will be proposing the new bid to the shareholders and ask them to accept it. The board has announced that the particular meeting will be held on October 19, 2021.
For now, the officials at CD&R and Morrisons have not made any comment on the situation. It is being hoped that both companies may open up about full details of the deal after October 19, 2021, once the meeting with shareholders is concluded.