British retailer Morrisons has agreed to a takeover offer from Clayton Dubilier & Rice LLC that values it at €8.2bn ($9.55bn). The new offer from CD&R marks the latest episode in a bidding war for Morrisons, Britain's fourth-largest grocery operator. CD&R is committed to supporting Morrisons's existing management team in continuing to execute its strategy, the companies said. Morrisons had previously rejected an initial proposal of €6.42bn from CD&R as the company believed it significantly undervalued the business.
Commenting on the CD&R Offer, Andrew Higginson, Chair of Morrisons, said: "The Morrisons Board believes that the offer from CD&R represents good value for shareholders while at the same time protecting the fundamental character of Morrisons for all stakeholders. CD&R have a strong record of developing, strengthening and growing the businesses that they invest in and they share our vision for Morrisons' future. This, together with the strong set of intentions that they have set out today, gives the Morrisons Board confidence that CD&R will be a responsible, thoughtful and careful owner of an important British grocery business."
Commenting on the CD&R Offer, Sir Terry Leahy, Senior Adviser to CD&R funds, said: "CD&R is delighted to have the opportunity to support the management of Morrisons in executing their strategy to grow and develop the business. The grocery sector in the UK is undergoing great change and we believe Morrisons is well placed, with CD&R's support, to succeed in this environment. CD&R values Morrisons' distinctive business model and is committed to supporting it, including the successful ESG and broader stakeholder engagement strategies of the company that are essential to its continued success."