New York’s Clayton, Dubilier & Rice wins $10bn auction for US supermarket Morrisons



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New York’s Clayton, Dubilier & Rice wins $10bn auction for US supermarket Morrisons

Clayton, Dubilier & Rice (CD&R), one of the world’s oldest private equity investment firms founded back in the 1978s, had purchased the United Kingdom’s fourth-largest hypermarket chain, Morrisons, at a £7 billion ($9.5 billion) buyout bid, putting an end to a months-long rattling takeover battle.

On top of that, a ‘Takeover Panel’ that supervises Merger & Acquisition deals in the UK, said in a statement on Saturday that the New York-based private equity fund CD&R had proffered a buyout bid of 287 pence a share, outpacing a 286 pence per share offer from a syndicate led by Japan’s tech investment tycoon SoftBank alongside Fortress Investment Group.

In factuality, CD&R’s latest triumph to win a takeover battle for Morrisons in effect would mark up a jubilant return of Terry Leahy, a former Chief of Britain’s largest supermarket chain Tesco, into the island Kingdom’s grocery sector.

CD&R wins takeover battle over UK supermarket chain Morrisons

Nevertheless, CD&R had proposed a 285-pence per share acquisition bid for Morrisons back in August, however, Morrison’s board had recommended a higher bid following a 286-pence per share offer from a consortium led by Japan’s SoftBank alongside Fortress Investment Group.

Though, a winning bid of 287-pence-per share had been just a notch higher than CD&R’s initial bid. Aside from that, Morrison’s management board, which is expected to meet over the weekend, would more likely to recommend the shareholders to accept CD&R’s takeover bid at a shareholders’ meet scheduled to take place on October 19.

Nonetheless, while being asked over the issue, neither Morrisons, nor CD&R had commented over the subject-matter.