CD&R wins $ 10 billion auction for UK supermarket Morrisons By Reuters

© Reuters. FILE PHOTO: View of a Morrison supermarket in Birtley, Britain, Aug. 16, 2021. REUTERS / Lee Smith / File Photo

LONDON (Reuters) – Clayton, Dubilier & Rice (CD&R) won Britain’s Morrisons auction with a bid of 7 billion pounds ($ 9.5 billion), paving the way for the US private equity firm to take control of the fourth largest supermarket group in the UK. .

The Acquisitions Panel, which governs UK M&A operations and organized the auction, said on Saturday that CD&R had offered 287 pence per share, while a consortium led by Softbank-owned Fortress Investment Group (OTC: ), offered 286 pence.

CD & R’s victory marks a triumphant return to the UK grocery sector for Terry Leahy, the former CEO of Britain’s largest supermarket chain, Tesco (OTC :), who is a senior advisor to the firm. .

The CD & R auction bid is only slightly higher than the 285 pence per share bid that was recommended by Morrisons’ board in August.

The Morrisons board, which meets on Saturday, is expected to recommend that shareholders accept the new offer at a shareholders meeting scheduled for Oct. 19.

If shareholders approve the offer, CD&R could complete its acquisition of Morrisons by the end of the month, the second UK supermarket chain in a year to be acquired by private equity after the purchase of player number 3, Asda, completed in February. .

($ 1 = 0.7383 pounds)

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