Morrisons has agreed to a £6.3 billion takeover bid from Fortress. The Big 4 grocer rejected an earlier bid of £5.5 billion from CD&RThe new deal will see shareholders receive 252p per share plus a 2p special dividend. Morrisons has agreed to a takeover bid from a consortium of investment groups in a deal worth £6.3 billion. The move comes as the Big 4 grocer rejected an earlier £5.5 billion takeover bid from US private equity firm Clayton Dubilier & Rice (CD&R), which Morrisons claimed to “significantly undervalue” the business.
The new offer, led by Softbank-owned Fortress which has partnered with Canada Pension Plan Investment Board and Koch Real Estate Investments, will see shareholders receive 252p per share plus a 2p special dividend.
The all-cash offer is subject to shareholder approval.
READ MORE: Top Morrisons shareholder puts £6.5bn price tag on supermarket
The offer represents a 42 per cent premium on the Morrisons share price before it had rejected a takeover proposal from CD&R last month.
Fortress has previously invested in the grocery industry, in both North America and Europe, with investments including Majestic Wine in the UK.
“The Morrisons directors believe that the offer represents a fair and recommendable price for shareholders which recognises Morrisons’ future prospects,” Morrisons chairman Andrew Higginson said.
“Morrisons is an outstanding business and our performance through the pandemic has further improved our standing and enabled us to enter the discussions with Fortress from a hard-won position of strength.
“We have looked very carefully at Fortress’ approach, their plans for the business and their overall suitability as an owner of a unique British food-maker and shopkeeper with over 110,000 colleagues and an important role in British food production and farming.
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