You are here: Home - Investing - Experienced Investor - News -

Morrisons agrees £6.3bn takeover

0
Written by:
05/07/2021
Morrisons has agreed to a £6.3bn takeover by a consortium of investment groups.

The takeover is being led by US firm Fortress Investment Group. The all-cash offer is subject to shareholder approval.

Morrisons said the offer value represented a 42 per cent premium on its share price before the offer period.

Fortress, a subsidiary of SoftBank Group, has invested in grocery retail in both North America and Europe, including an investment in Majestic Wine in the UK.

The firm said it intends for Morrisons to continue to operate as a standalone business and it will continue to support the supermarket’s current strategy of targeting new store openings.

Andrew Higginson, chairman of Morrisons, said: “The Morrisons Directors believe that the Offer represents a fair and recommendable price for shareholders which recognises Morrisons’ future prospects. 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. It’s clear to us that Fortress has a full understanding and appreciation of the fundamental character of Morrisons.”

Joshua A. Pack, managing partner of Fortress, said: “We believe in making long-term investments focused on providing strong management teams with the necessary flexibility and support to execute their strategy in a sustainable and value enhancing manner.

“We fully recognise Morrisons’ rich history and the very important role Morrisons plays for colleagues, customers, members of the Morrisons Pension Schemes, local communities, partner suppliers and farmers. We are committed to being good stewards of Morrisons to best serve its stakeholder groups, and the wider British public, for the long term.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week