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Morrisons has announced that it has been acquired by US firm Clayton, Dubilier and Rice (CD&R) for a total of £7bn.
The firm won the supermarket chain at auction on Saturday (2 October 2021), where it bid 287p per Morrisons ordinary share, against a rival offer from Fortress, for 286p per share.
The supermarket group had previously declined an offer worth £5.5bn by the firm back in July stating that it “undervalued the business significantly”.
Andrew Higginson, chair of Morrisons, commented that the final offer represented “excellent value for shareholders”, while at the same time protecting the “fundamental character” of Morrisons for all stakeholders.
He said: “We remain confident that CD&R will be a responsible, thoughtful and careful owner of an important British grocery business. Shareholders will now have the final say and, if the offer is approved, the board is confident that Morrisons will continue to go from strength to strength under CD&R’s ownership.”
Sir Terry Leahy, senior adviser to CD&R funds, added: “We are gratified by the recommendation of the Morrisons board and look forward to the shareholder vote to approve the transaction.
“We continue to believe that Morrisons is an excellent business, with a strong management team, a clear strategy, and good prospects.”
