Morrisons rejects £5.5bn private equity proposal
Supermarket chain Morrisons said no to deal
Supermarket chain Morrisons has rejected a £5.5 billion cash offer from US private equity firm Clayton, Dubilier & Rice (CD&R), saying it “significantly undervalues the business”.
CD&R earlier said it noted “press speculation regarding a potential transaction” and confirmed it was considering making an offer.
Its offer to the UK’s fourth largest supermarket group was worth 230p per share.
In a statement, the supermarket chain said the board and its financial adviser, Rothschild & Co, had “unanimously concluded” the offer “significantly undervalued Morrisons and its future prospects” and therefore rejected it.
Last month, Morrisons said sales had increased by 2.7% in the 14 weeks to 9 May. But in the previous three months alone it had faced a £27m bill for Covid-related costs.
CD&R has previously invested in the discount household products chain B&M,