Private equity group Apollo will not make a bid for Morrisons on its own, but may swing behind Fortress’s recommended offer.
Apollo had previously been considering mounting a bid for Morrisons, which would have pitted it against investment giant Fortress as well as private equity house CD&R, which is also eyeing Morrisons.
In a statement this morning, Apollo said: “Apollo confirms that it does not intend to make an offer for Morrisons other than as part of the Fortress offer.”
“Apollo Global Management confirms that it is in the preliminary stages of discussions with Fortress Investment Group, LLC regarding the recommended offer for Morrisons by Oppidum Bidco Limited which may result in funds managed or advised by Apollo forming part of the investment group led by Fortress for the purposes of the Fortress offer.”
CD&R revealed its interest in Morrisons last month, after it approached Morrisons with an offer valuing it at £5.5bn. CD&R’s overture was rejected by Morrisons chiefs, who subsequently recommended a £6.3bn offer from Fortress, which also owns Majestic Wine.
Fortress has indicated that it does not intend to sell and lease back Morrisons stores en masse, to honour a landmark pay commitment and work in partnership with suppliers, but the potential sale of the grocer to a private group has sparked widespread concern.
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