Once again: British supermarket chain auctioned for £7 billion | Financial

The final offer from US CD&R was 287 pence (€3.35) per share, valuing the chain at around 7 billion pounds (€8.2 billion). Opponent Fortress Investment Group, also an American asset manager, offered 286 pence.

The stock closed on Friday at 297 pence.

Even and uneven

To prevent the two firms that have been battling for the supermarket since May from not coming together again, CD&R had to bid an odd amount, and Fortress Investment Group an even amount.

It is the largest acquisition in the United Kingdom (UK) in more than a decade. Morrisons is the UK’s fourth largest supermarket chain after Tesco’s, Sainsbury’s and Asda.

The chain is popular with investors because more than 90% of the real estate is owned and there is little debt.

Approval

The supermarket chain’s board of directors and shareholders have yet to agree to the takeover. Shareholders will do so on October 19.

Little will change for the employees. CD&R previously promised to maintain its wage and pension policy. CEO David Potts would also be allowed to stay. He could pocket some 10 million pounds if he sells his shares to CD&R.

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