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Clayton, Dubilier and Rice (CD&R) has been given more time to launch a rival offer for Morrisons.
The supermarket asked the UK Takeover Panel, which regulates market activity, to give CD&R more time following the news that rival private equity firm Fortress Investment Group had upped its offer to £6.7bn.
The Takeover Panel has now extended the deadline for CD&R to announce a firm intention to make an offer for Morrisons or walk away from 5pm today (9 August) to 5pm on 20 August.
The news comes after it was revealed on Friday that Morrisons had reached an agreement with Fortress Investment Group for a revised takeover offer worth £6.7bn.
The increased offer of 270p per share plus 2p in special dividend represents an increase of approximately £400m to Fortress’ original offer value.
In a statement, the supermarket stated that the offer was in the “best interests” of its shareholders as a whole and considered the terms of the increased Fortress offer to be “fair and reasonable”.
Silchester, the largest shareholder at Morrisons, had previously claimed it was “not inclined” to support the previous £6.3bn offer, which had been accepted by the company’s board.
Morrisons, which is the UK’s fourth-largest grocer, had also previously rejected an £5.5bn offer from Clayton, Dubilier and Rice (CD&R), which valued Morrisons at 230p per share.
Morrisons has also announced it had postponed a shareholder meeting to vote on the Fortress offer until 27 August.
