Morrisons rejects takeover proposal

By David Shrimpton in Industry News 21st June 2021

Morrisons has rejected an unsolicited £5.5bn takeover proposal from US buyout firm CD&R that the supermarket says “significantly undervalued” the company and its future prospects.

In a statement at the weekend, Morrisons confirmed that on 14 June it received an “unsolicited highly conditional non-binding proposal from CD&R in relation to a proposed cash offer of 230p per Morrisons share”.

The proposal came with a number of pre-conditions, including the completion of detailed due diligence and the arrangement of debt financing, Morrisons said.

It rejected the proposal on 17 June.

In line with takeover rules, CD&R now has until 17 July to either announce a firm intention to make an offer for Morrisons, or say it does not intend to proceed.

Former Tesco boss Sir Terry Leahy is a senior advisor to CD&R

Shares in Morrisons jumped this morning on news of the proposed bid, while Sainsbury’s and Tesco also increased in value, amid speculation that the move could spark further takeover activity in the UK grocery sector.