The private equity owner of Morrisons, Clayton, Dubilier & Rice (CD&R) has looked to ease supplier and investor fears, that they would renege on the company’s traditional business model.
The Sunday Telegraph first reported that CD&R is facing rising interest payments on borrowing money in the short term as inflation and interest rates rise.
Investors raised concerns during the bidding war that CD&R would shift away from Morrison’s traditional spending, dislike of debt and commitments to British Farming.
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However, CD&R, which won a £10 billion bidding war for Morrisons in October, assured investors that it will not move away from the model to foot the bill, committing to invest in its supply chain and “nurture the relationships with its supplier network”.
A Morrisons spokesperson said: “CD&R values Morrisons’ distinctive business model and is committed to supporting it.”
Morrisons is the largest customer of British farming and works directly with 3,000 livestock farmers and 200 growers.
The assurance will soothe fears from the chain’s farming suppliers after Asda abandoned a commitment to sell 100% British beef due to high prices.