British supermarket giant Morrisons has accepted a takeover offer from a consortium of investment groups following its rejection of a private equity bid last month, the chain announced today.
The takeover of the supermarket based in northern England follows the rejection of a £5.5 billion offer in June from Clayton Dubilier & Rice that sent the chain’s share prices soaring but which Morrisons ultimately said was too low.
Fortress, which led the offer, would offer Morrisons “long term support,” Higginson said.
In Europe, the investment management firm has holdings in food retail and the UK-based wine retailer majestic Wine.
In the United States, as well as groceries, Fortress has invested in petrol station forecourts, retail and restaurants.
Richard Lim, CEO of consultancy Retail Economics, said the announcement “signals the biggest shakeup in the UK grocery sector for over a decade”.
“Success will hinge on the new owners gaining the support of experienced key members of the leadership team to execute on the future strategy,” he added, emphasising the impact of the shift towards online grocery shopping and the growth of rapid delivery on the market. — AFP
