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Private equity group Clayton, Dubilier & Rice (CD&R) is reportedly set to kick off a bidding war for grocery chain Morrisons, following a £6.3bn offer from American rival Fortress.
According to The Sunday Times, CD&R is said to be lining up equity and debt financing for a counter bid offer that could come “as soon as this week”.
If the offer is successful, it is understood that the group intends to open a chain of Morrisons convenience stores at the 900-plus petrol stations operated by Motor Fuel Group, which CD&R has owned since 2015.
CD&R, which is being advised by former Tesco boss Sir Terry Leahy, is also reportedly looking at how it can use extra space in Morrisons’ supermarkets “more imaginatively”.
Morrisons previously rejected an initial £5.5bn offer from CD&R. The offer, which was submitted on 14 June, valued Morrisons at 230 pence per share for the entire share capital of the group.
The news comes days after a consortium, which is being led by Majestic Wines owner Fortress, said the CMA told the group that it had “no further questions” in relation to the offer.
In a letter to the stock exchange, it also noted that the CMA “has not opened an inquiry, or indicated in writing that it is still investigating whether to open an inquiry”.
