Morrisons suitor partners with rival in £6.3bn bid attempt

Private equity firm Apollo Asset Management, which confirmed it was considering a bid for Morrisons earlier this month, said it will no longer be making an offer for the Big 4 grocer.

Instead, bosses said they are in early discussions with rival PE firm Fortress to team up and become part of its consortium to buy the grocer.

Fortress is owned by Softbank and made a £6.3 billion offer for the business, which was accepted by the board.

Apollo said the discussions “may result in funds managed or advised by Apollo forming part of the investment group led by Fortress for the purposes of the Fortress offer.

READ MORE: Morrisons agrees £6.3bn takeover deal with investment group

“As a consequence of these discussions, Apollo confirms that it does not intend to make an offer for Morrisons other than as part of the Fortress offer.”

It added: “Apollo notes Fortress’s intentions regarding the Morrisons business and all its stakeholders, as set out in the announcement of the Fortress offer… Should these discussions lead to any transaction, Apollo would be fully supportive of Fortress’s stated intentions regarding Morrisons.”

The takeover battle for the supermarket started last month when New York private equity firm Clayton, Dubilier & Rice (CD&R) made a proposed £5.5 billion bid, but this was rejected.

However, politicians have raised concerns about the takeover and warned that any new owner could strip assets and reduce the rights of workers.

Morrisons owns the vast majority of its stores’ freeholds and has a large manufacturing supply chain.

But Fortress has stressed it intends to continue operating with the same management team, did not sell any of its freehold or long leasehold properties after it bought Majestic Wines in 2019, and “does not anticipate engaging in any material store sale and leaseback transactions” at Morrisons.

with PA Wires

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