Morrisons owner opts out of Boots bid

Morrisons owner CD&R has opted not to make a bid for Boots.

The decision comes as The Competition and Markets Authority (CMA) is still probing the supermarket’s takeover and has even banned the private equity firm from integrating other businesses with the Big 4 grocer.

Moreover, Asda owners, TDR capital, remain in the running to secure control of the drugstore chain and plans to integrate it into the grocer’s stores.

The news comes as Boots owner, Walgreens Boots Alliance, has a deadline until today (24 February) to receive bids for the retailer, according to Reuters.

READ MORE: Morrisons becomes first UK grocer to switch own-brand fresh milk to cartons

The drug store chain is expected to receive indicative bids from investors of up to £8 billion.

The Boots auction, led by Goldman Sachs, has attracted some of the world’s leading private equity including CVC Capital Partners and Bain Capital, led by Dominic Murphy – the ex-supremo of Boots’ former owner KKR.

US investment firms Sycamore Partners and Apollo are also understood to be tabling bids for Boots.

The sales will see US drugstore giant Walgreens cash out the retailer, which operates more than 2,200 stores and employs about 51,000 people.

In addition, it will lead to the dismantling of the Walgreens Boots Alliance (WBA), which was set up in 2014 when Walgreens took full control of the business.

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