Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Retail

Morrisons Auction Process Set For 'Shootout' Finale This Weekend

The battle to acquire Morrisons is set to come to a head this Saturday, as the rival bidders take part in a straight shootout to determine who will take over the UK's fourth-largest retailer.

Both Fortress Investment Group and Clayton, Dubilier & Rice have tabled bids for Morrisons in recent weeks, but based on the fact that neither party has declared its final offer, the UK's Takeover Panel has established a five-round auction procedure that will take place on 2 October.

Shootout Structure

In the first round, either party may make an increased bid, and should the procedure not be concluded in this first round, a further three rounds will take place, in which either party will be able to make a bid provided the rival party has made a bid in the preceding round.

'If the auction procedure has not concluded after these three further rounds (which it will if no increased bid is made in a round), there will be a fifth and final round, in which both offerors may make an increased bid,' the Takeover Panel said in a statement.

In the final round, each party is permitted to make its offer subject to a condition that the other party also makes a bid in that round.

Once this process is completed, the Panel Executive will make an announcement on the result of the auction procedure, which is set for 7am on Monday 4 October, while both parties are also required to make an announcement.

Following this process, on 5 October, Morrisons will announce its views on the matter, and issue its intended recommendation to shareholders.

First-Half Performance

Earlier this month, Morrisons reported a 37.1% fall in first-half profit, with the retailer citing high COVID-19 related costs and a pandemic impact on its food-to-go operations.

Sales were down 3.7% in the second quarter, having risen 2.7% in the first quarter.


© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days