LONDON: US private equity firm Clayton, Dubilier & Rice (CD&R) is considering a possible cash offer for British supermarket group Morrisons, it said yesterday.
CD&R “notes the press speculation regarding a potential transaction involving Morrisons and confirms that it is considering a possible cash offer for the … share capital of Morrisons,” it said.
It said there was no certainty an offer would be made. Under British takeover rules CD&R has until July 17 to make a formal bid.
CD&R’s statement followed a Sky News report that it had made a preliminary bid approach to the supermarket group’s board that could value Morrisons at £5.5 billion ($7.6bn).
Bradford, northern England-based Morrisons is Britain’s fourth-largest grocer by sales, trailing market leader Tesco, Sainsbury’s and Asda.
Shares in Morrisons, down three per cent over the last year, closed on Friday at 182 pence, valuing the group at £4.33bn.
CD&R’s approach underlines private equity’s growing appetite for UK supermarket assets, attracted by their cash generation and freehold assets.
In February,…
