Morrisons set for takeover with increased cash offer following auction

Supermarket chain Morrisons is set to be taken over following an increased cash bid.

The firm looks set to be taken over by a new entity formed by Clayton, Dubilier & Rice, LLP following an auction last week.

CD&R Bidco and Fortress Bidco participated in an auction procedure on October 2 to determine their respective offers for Morrisons.

Under the terms of the final Fortress offer, Morrisons shareholders would be entitled to receive cash consideration of 286 pence for each Morrisons Share from Fortress Bidco, whereas CD&R Bidco’s offer comprises 287 pence per share.

In a statement this morning, CD&R Bidco commented: “Following the conclusion of the Auction Procedure, CD&R Bidco and Morrisons are pleased to announce the terms of CD&R Bidco’s superior cash offer for the entire issued and to be issued share capital of Morrisons, which the Morrisons Board intends to recommend unanimously.”