Third bidder for Morrisons

THE $8.7 billion (£6.3bn) bid battle for Britain’s fourth largest supermarket group Morrisons ratcheted up on Monday (5) when a third private equity group, Apollo Global Management, entered the fray.

The US group Apollo, which last year missed out on buying Asda, the thirdlargest grocery player in the UK, said it was evaluating a possible offer for Morrisons, but had not approached its board.

Last Saturday (3) Morrisons said the board, led by chairman Andrew Higginson, had recommended a takeover led by SoftBankowned Fortress Investment Group that valued the firm at £6.3bn.

The offer from Fortress, along with Canada Pension Plan Investment Board and Koch Real Estate Investments, exceeded a £5.5bn unsolicited proposal from Clayton, Dubilier & Rice (CD&R), which Morrisons rejected on June 19.

However, it was less than the £6.5bn asked for by top 10 Morrisons investor JO Hambro last week.

Ultimately, the fate of Morrisons will be decided by its shareholders.

Morrisons’ three biggest investors Silchester, Blackrock and Columbia Threadneedle, which Refinitiv data showed having stakes of 15.2 per cent, 9.6 per cent and 9.4 per cent respectively, are effectively the kingmakers. None has commented so far.

Analysts have speculated that other private equity groups and Amazon, which has a partnership deal with Morrisons, could create a potential bidding war.

Under British takeover rules, CD&R has until July 17 to make a firm offer.