CD&R wins £7.1bn auction to acquire Morrisons

Clayton, Dubilier & Rice (CD&R) has won an auction for Morrisons with a £7.1 billion offer, outbidding Fortress Investment Group to buy the supermarket chain.

CD&R offered 287p in cash for each Morrisons share, which beat the 286p offer tabled by Fortress in an auction on Saturday. CD&R’s winning bid was just 2p above the firm’s existing offer, which was recommended in August.

The US private equity firm’s final offer represents a 61% premium on Morrisons’ share price before takeover interest publicly emerged nearly four months ago.

Morrisons’ chairman, Andrew Higginson, said: “Today’s final offer from CD&R represents excellent value for shareholders while at the same time protecting the fundamental character of Morrisons for all stakeholders”.

“CD&R have good retail experience, a strong record of developing and growing the businesses in which they invest, and they share our vision and ambition for Morrisons. We remain confident that CD&R will be a responsible, thoughtful and careful owner of an important British grocery business.”

He continued: “Shareholders will now have the final say and, if the offer is approved, the board is confident that Morrisons will continue to go from strength to strength under CD&R’s ownership”.

Morrisons’ shareholders will vote on the final offer on 19 October.