UK watchdog investigates CD&R’s $10bn deal for Morrisons

Oct 29, 2021 | News

Britain’s competition regulator has opened an investigation into the $9.6bn purchase of UK supermarket chain Morrisons by U.S. private equity group Clayton, Dubilier & Rice, the watchdog said on Friday.

The Competition and Markets Authority (CMA) said that Morrisons should continue to be run as an independent business for the time being with its own brand and management.

Morrisons did not immediately respond to a request for comment on the order, which the CMA said does not prohibit the completion of the deal as long as CD&R and Morrisons observe the restrictions it has set out.

CD&R said it looks forward to “working constructively with the CMA to address any questions they may have”.

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The proposed deal, backed by Morrisons’ shareholders, was settled after a rare auction that was held because there were competing bids from CD&R and Softbank-owned Fortress Investment Group.

There has been speculation that, through the deal, CD&R could combine its 918 Motor Fuel Group (MFG) fuel forecourts with the 339 owned by Morrisons, opening Morrisons convenience stores on the sites.

The proposed takeover has been the highest profile among a series of transactions where U.S. investment firms have targeted British companies because of relatively low valuations since Brexit.

Source: Reuters

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