Morrisons accepts improved £7bn takeover offer from US private equity firm

Clayton Dubilier & Rice outbids rival Fortress with 285p per share offer

Morrisons’ (LON:MRW) board got behind a £7bn takeover by Clayton Dubilier & Rice yesterday as the private equity company outbid its rival with a 285p per share offer.

The FTSE 100 company’s board changed its mind having initially supported Fortress’ bid.

Fortress is now reviewing its options having previously had its £6.7bn bid accepted.

The Morrisons share price is up by 4.33% early on Friday, which could be a sign that another bid is expected.

Back in July Morrisons had turned down an offer of £5.5bn from Clayton Dubilier & Rice suggesting it was significantly under market value.

Andy Higginson, Morrisons’ chairman, said that the offer “represents good value for shareholders while at the same time protecting the fundamental character of Morrisons for all stakeholders.”

The supermarket chain said it would like Morrisons’ current management team to head-up a review of the company’s mission and strategy, working alongside Clayton Dubilier & Rice.

Morrisons consists of just under 500 stores and over 110,000 employees across the UK.

Morrisons first existed as a market stall in Bradford in 1899 owned by William Morrison. His son then took over the company and opened the first supermarket in the 1960s.