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Apollo Asset Management has revealed it will no longer push ahead with a solo takeover offer for UK supermarket Morrisons, but said it is in discussions to join a rival bid.
In a statement released today (20 July) the company said it is in “preliminary discussions” to join forces with the consortium headed by US private equity firm Fortress Investment Group and as such no longer intends “to make an offer for Morrisons other than as part of the Fortress offer”.
The consortium has already had a £6.8bn bid accepted by the Morrisons board and the offer is now awaiting shareholder approval.
Apollo said: “Apollo confirms that it does not intend to make an offer for Morrisons other than as part of the Fortress offer.
“Apollo Global Management confirms that it is in the preliminary stages of discussions with Fortress Investment Group, LLC regarding the recommended offer for Morrisons by Oppidum Bidco Limited which may result in funds managed or advised by Apollo forming part of the investment group led by Fortress for the purposes of the Fortress offer.”
Discussions surrounding a takeover of the ‘Big Four’ grocer began last month after it rejected a £5.5bn takeover bid from the American private equity company, Clayton, Dubilier and Rice (CD&R).
Submitted on 14 June, CD&R’s offer was valued at 230 pence per Morrisons share for the entire share capital of the group.
While the offer was rejected it encouraged other investment firms, including Apollo and Fortress, to explore a deal.
