US firm latest to eye Morrisons takeover with improved £7bn bid

One of the UK’s biggest supermarket groups is set to be taken over by a US firm following a new takeover bid.

Supermarket chain Morrisons has accepted a £7bn takeover bid from US private equity group Clayton, Dubilier & Rice (CD&R).

The news follows a previous £6.7bn offer from a consortium led by US investment group Fortress, which has been rejected.

Andrew Higginson, chair of Morrisons, commented: “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.

CD&R have a strong record of developing, strengthening and growing the businesses that they invest in and they share our vision for Morrisons’ future.

“This, together with the strong set of intentions that they have set out today, gives the Morrisons Board confidence that CD&R will be a responsible, thoughtful and careful owner of an important British grocery business.”

Sir Terry Leahy, Senior Adviser to CD&R funds, added: “CD&R is delighted to have the opportunity to support the management of Morrisons in executing their strategy to grow and develop the business.

“The grocery sector in the UK is undergoing great change and we believe Morrisons is well placed, with CD&R’s support, to succeed in this environment.

“CD&R values Morrisons’ distinctive business model and is committed to supporting it, including the successful ESG and broader stakeholder engagement strategies of the company that are essential to its continued success.”