Morrisons chief executive David Potts is expected to meet business secretary Kwasi Kwarteng next week to brief him on the potential takeover of the grocer by private investment group Fortress.
The meeting is likely to take place next Friday, The Times reported. It is designed to allay concerns about the implications of a Morrisons deal such as the potential for asset stripping, repercussions for wider stakeholders such as suppliers including farmers, and food security concerns in the wake of Brexit and the pandemic.
The meeting follows last weekend’s surprise £6.3bn recommended offer from Fortress and the possibility of a bidding war.
This followed earlier interest in the grocer from private equity house CD&R. Another private equity group, Apollo, has also indicated it is casting its slide rule over Morrisons.
Kwarteng said earlier this week that Morrisons was a “significant business” because of its history and importance as an employer of 130,000 people.
Fortress has said it would be a good, long-term custodian of Morrisons. It signalled there would be no “material” sale and leaseback of Morrisons’ stores, supported a landmark £10 an hour pay award and is committed to continuing to work in partnership with suppliers such as farmers.
Kwarteng said he is “monitoring the situation” and is “very interested in seeing how the situation develops”.
He told the Financial Times: “We need to assess what’s going on before making rush judgments. You have to look at behaviour, specifics and track record and see that certain safeguards are kept.”
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