Call for scrutiny of £6bn Morrisons deal
Consortium ‘will be good stewards’
THE LABOUR Party is calling on the Government to “closely scrutinise” an agreed £6.3bn takeover bid for the Bradford-based supermarket chain Morrisons from a consortium of investment groups.
The Shadow Minister for Business and Consumers, Seema Malhotra, said Ministers must ensure legal promises are made about the integrity and future of the business, including any impact on the supply chain and distribution centres.
The offer for Morrisons, led by Softbank-owned Fortress which has partnered with Canada Pension Plan Investment Board and Koch Real Estate Investments, will see shareholders receive £2.52 per share plus a two-pence special dividend. The offer is subject to shareholders’ approval.
Ms Malhotra said: “Ministers must urgently work with Morrisons and the consortium to ensure that crucial commitments to protect the workforce and the pension scheme are legally binding, and met.”
Bosses at Morrisons said Fortress has a “full understanding and appreciation” of the fundamental character of the business. A spokesman said Morrisons will not be commenting beyond a statement published on Saturday.
THE CONSORTIUM of investment groups which has agreed to a £6.3bn takeover of Morrisons said it is committed to ensuring the “rich history” of the Bradfordbased supermarket chain is preserved.
The offer, led by Softbankowned Fortress which has partnered with Canada Pension Plan Investment Board and Koch Real Estate Investments, will see shareholders receive £2.52 per share plus a two-pence special dividend. The all cash offer is subject to shareholder approval.
Joshua A Pack, a 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.”
The offer represents a 42 per cent premium on the Morrisons share price before it was announced that the supermarket had rejected a takeover proposal from New York-based firm Clayton, Dubilier and Rice (CD&R) last month.
Fortress has invested in grocery retail in both North America and Europe, and has invested in Majestic Wine in the UK.
Andrew Higginson, the 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 hardwon 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.”