Consortium ups its multi-billion pound takeover bid for Morrisons by £400m

An investment consortium looking to take over Morrisons Supermarket has agreed to raise its original £6.3bn bid for the Bradford-headquartered business by £400m.

The consortium, led by Fortress – which is owned by Japan’s Softbank – had agreed its previous offer after extensive negotiations with Morrisons.

But today it says it has noted speculation regarding a possible counter-offer by US buyout giant Clayton Dubilier & Rice (CD&R). Morrisons has already rejected an earlier £5.5bn approach from CD&R.

The consortium adds that it: “Remains committed to becoming the new owner of Morrisons and to being a responsible long-term steward of this great British company through the next stage of its evolution.”

It has now reached an agreement with Morrisons on the terms of a larger cash offer at an increased offer value of 272 pence for each Morrisons share.

A statement from the supermarket chain adds: “The Morrisons directors believe the increased Fortress Offer is in the best interests of Morrisons shareholders as a whole, and unanimously recommend Morrisons shareholders vote in favour of the resolutions required to implement the increased Fortress Offer to be proposed at the Court Meeting and the General Meeting on 16 August 2021.”

On 28 July 2021, Fortress said Cambourne Life Investment Pte Ltd would provide financing for the original Fortress offer as a co-investor, in addition to CPP Investments and KREI.

Today it explains the extra £400m will be financed by a combination of equity capital to be invested by Fortress, CPP Investments, KREI and Cambourne, along with term loan and revolving facilities to be provided under the Interim Facilities Agreement.

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