CD&R Wins Auction To Take Over Wm Morrison Supermarkets

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(RTTNews) – Clayton, Dubilier & Rice or CD&R has won an auction to take over the U.K. supermarket chain Wm Morrison Supermarkets plc (MRW.L).

U.K. Takeover panel had established an agreed auction procedure last month for the resolution of the competitive situation between CD&R and Fortress Investment Group in relation to the acquisition of Morrison. Two US-based investment groups participated in the auction procedure held on 2 October 2021 to determine their respective final offers for Morrisons.

CD&R’s victory was announced by the Takeover Panel on Saturday. CD&R offered 287 pence per Morrisons share, against a rival bid of 286 pence per share from Fortress.

The CD&R final offer values the entire issued and to be issued share capital of Morrisons at about 7.1 billion pounds on a fully diluted basis and implies an enterprise value of 9.8 billion pounds.

As per the terms of the Auction procedure, CD&R and Fortress are prohibited from further revising the price of their respective offers for Morrisons unless a third party announces a firm intention to make an offer for Morrisons.

CD&R noted that Morrisons directors recommend unanimously that Morrisons Shareholders vote in favor of the Scheme at the Court Meeting and the Resolution to be proposed at the General Meeting, each convened for 19 October 2021.