CD&R wins auction for British supermarket chain Morrisons
Clayton, Dubilier & Rice won the auction for British supermarket chain Morrisons (LSE: MRW) with a £7 billion bid.
Why it matters: This was a photo finish, with CD&R beating out SoftBank-owned Fortress Investment Group by just one pence per share (287 vs. 286).
- Buzz is already building that Fortress will seek out a Morrisons rival as a consolation prize, as evidenced by a Monday morning stock bump for Sainsbury's.
The bottom line: "CD&R said it’ll help Morrison grow by expanding its wholesale business and driving online sales," Bloomberg's Deirdre Hipwell reports.
- "The private equity firm pointed to its experience with British discounter B&M, which it said more than doubled revenue and earnings before interest, taxes, depreciation and amortization under its ownership."
- "CD&R also owns Motor Fuel Group, a large petrol station business, and is likely to consider rolling out the grocer's convenience store brand, Morrison's Daily, on these forecourts," Hipwell reports.