Will Amazon Table A Bid For Morrisons? Perhaps, But Not Right Now
The news that Clayton, Dubilier & Rice made a £5.5 billion (€6.4 billion) bid to take over Morrisons has sent the rumour mill into overdrive, with Amazon once again named as a potential rival suitor for the UK's fourth-biggest grocer, in a move akin to its acquisition of US grocer Whole Foods.
However, according to Andy Halliwell, senior director at digital consultancy Publicis Sapient, while Amazon has long been associated with a possible swoop for Morrisons, the timing might not be ideal for the online giant.
"It may just be too soon for Amazon to commit to the UK marketplace – where they’ve traditionally preferred a more staggered, test and learn approach, and ultimately I don’t believe they’re interested in owning such a large amount of real estate," he said.
However, he added that an Amazon offer "would almost certainly be preferred by existing shareholders, and the offer could be comparatively cheap for Amazon if they offered an appealing mix of cash and shares rather than a pure cash-buyout."
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