UK: Morrisons agrees takeover deal

UK supermarket chain Morrisons has agreed on a takeover offer from a consortium led by US-based Fortress Investment Group in a deal worth $9.01 billion, according to BBC and FoodBev reports.

Morrisons, which has around 500 outlets and a workforce of more than 110,000, had previously rejected a bid from another US private investment group which valued the company at $7.65 billion.

Fortress Investment Group’s previous UK investments include alcoholic drinks firm Majestic Wine.

Commenting on the deal, Morrisons chairman Andrew Higginson said: “It’s clear to us that Fortress has a full understanding and appreciation of the fundamental character of Morrisons. This, together with the very clear intentions they have set out today, has given the Morrisons directors confidence that Fortress will support and accelerate our plans to develop and strengthen Morrisons further.”

Joshua Pack, managing partner at Fortress Investment Group, said: “We believe in making long-term investments focused on providing strong management teams with the necessary flexibility and support to execute their strategy in a sustainable and value enhancing manner”.

“We fully recognise Morrisons’ rich history and the very important role Morrisons plays for colleagues, customers, members of the Morrisons Pension Schemes, local communities, partner suppliers and farmers”, he added.

The transaction is expected to be concluded by Q4 2021.

Source: BBC / FoodBev