Fortress expects CMA to clear Morrisons takeover bid

No comments

The private equity consortium led by Fortress has said that it does not expect the CMA to oppose its proposed bid for Morrisons following growing opposition from shareholders.

Fortress, which is the current frontrunner to acquire Morrisons, said that the UK competition regulator has not raised any concerns regarding its proposed £6.3bn takeover of the grocer.

The Majestic Wine owner said the Competition and Markets Authority (CMA) has “not opened an inquiry or indicated in writing that it is still investigating whether to open an inquiry” into its potential acquisition of the supermarket chain.

This steer by the CMA comes after the competition regulator blocked the proposed merger of Sainsbury’s and Asda in 2019.

Fortress’ confirmation of the CMA’s current stance on its bid comes amid growing opposition of its takeover approach for Morrisons from the big four grocer’s key shareholders.

Morrisons’ largest shareholder, Silchester, which owns a 15.1% stake in the retailer, said earlier this week that it “is not inclined” to support the existing Fortress offer at the upcoming court and shareholder meeting. Top 10 shareholder JO Hambro has since said that Fortress’ 254p-a-share offer for Morrisons was too low.

Fortress is leading a consortium of private equity firms in the Morrisons bid including Singaporean sovereign fund GIC, and is in talks with Apollo about joining the bid as well.

Investors are set to vote on Fortress’ offer in a general meeting on August 16.