Morrisons takeover battle reaches £7bn at auction

It looks like the battle for control of UK supermarket chain Morrisons (LSE: MRW), which kicked off back in June, is finally over. Investment rivals Clayton, Dubilier & Rice (CD&R) and Fortress Investment Group (owned by Softbank) had been slugging it out.

As neither bidder had declared their offer final, the Takeover Panel took the competition to auction at the weekend. CD&R’s winning bid of 287p per share came in ahead of the 286p offered by Fortress.

Investors had been pushing the Morrisons share price further, edging it up as high as 297p even as late as Friday. They were clearly anticipating better offers from the combatants. But now it’s all done and dusted, the shares opened Monday at 286p for a drop of 3.7%.

60% premium

Investors who held the shares prior to the start of the bidding war have done very nicely. The final deal represents a premium of approximately 60% over the market price at the time. It values Morrisons at £7bn, after the company’s board had rejected a previous offer from CD&R valuing it at £5.5bn.

The takeover marks the return of a familiar name to the UK supermarket sector, that of Terry Leahy. Sir Terry was previously chief executive at Tesco, and is now a senior adviser at CD&R.

Morrisons shareholder approval

The bid still needs the nod from Morrisons shareholders, with the board expected to recommend acceptance at a meeting on 19 October. If it goes ahead as expected, CD&R should take control in November.

In other news, the Sainsbury share price ticked up a couple of percent in early Monday trading.

The post Morrisons takeover battle reaches £7bn at auction appeared first on The Motley Fool UK.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

More reading

Morrisons share price: this weekend could be the endgame!
The Tesco share price: is a buyout on the cards?
I think the Morrisons share price will exceed £3 at auction
Morrisons’ share price stays flat despite 37% fall in profit

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Morrisons. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Leave a Reply

%d bloggers like this: