LONDON (Reuters) – Morrisons Supermarket UK reported on Saturday that private equity firm Clayton Duville & Rice (CD&R) approached an initial bid of £ 5.5 billion ($7.59 billion) for the supermarket group’s board of directors is. and declined to comment on it.
Morrisons Supermarket uk declines to comment on reports of 5.5 billion stg bidding approach
A spokesman for Morrison, based in Bradford in northern England, did not comment on the live Times media report. A CD&R spokesperson also declined to comment.
Morrisons Supermarket UK is the UK’s fourth largest grocery store in terms of sales, behind market leaders Tesco, Sainsbury’s and Asda.
Shares of Morrisons Supermarket UK fell 3% over the past year, and closed at 182p on Friday, with a group value of £4.33bn.
Live Times Media reported that CD&R recently began working with banks to finance potential bids on Morrisons Supermarket.
Former Tesco CEO Terry Lee Hee, CD&R’s senior adviser, may be involved in the bid.
While he was at Tesco, Lee was the boss of Andrew Higginson and David Potts. They are currently the President and Chief Executive Officer of Morrison, respectively.
Morrison’s bid follows Wal-Mart’s recent sale of a majority stake in Asda to the Issa brothers and private-equity fund TDR Capital.
Following Sainsbury’s failure to buy Asda in 2019 after British competition regulators blocked the agreed deal, Asda was valued at £6.8 billion.
Morrison has a partnership agreement with Amazon, and speculation remains that it may emerge as a potential bidder.
($1 = 0.7242 lbs)
(Reporting by James Davey; Editing by Christina Fincher)
UK Morrisons Supermarket declined to comment on reports of a 5.5 billion STG bid approach.
Source link UK Morrison declined to comment on report of 5.5 billion STG bid approach