Morrisons takeover bid: supermarket is an attractive target for private-equity buyers

A private-equity group has made an offer for Morrisons, Britain’s fourth-largest supermarket. Other bids are likely to emerge. Matthew Partridge reports.

Morrisons shop staff
Morrisons seems disinclined to fight tooth and nail for its independence
(Image credit: © Alamy)

Shares in Wm Morrison, Britain’s fourth-largest supermarket, surged by 30% on Monday following a takeover approach from US private-equity firm Clayton, Dubilier & Rice (CD&R), says Jonathan Eley in the Financial Times. CD&R’s 230p-a-share offer gives Wm Morrison an enterprise value of £8.7bn. It has rejected the approach, claiming it “significantly undervalued” its business and prospects.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri