Morrisons – auction to take place between potential buyers

An auction is to be held for the UK supermarket Morrisons thanks to competing private equity investors interested in taking over the firm.

The Takeover Panel is consulting the Morrisons board and the bidders Clayton, Dubilier & Rice (CD&R) and Fortress – over the format of the auction. It is believed that the auction for the supermarket is likely to be formally held within a few weeks.

The interest from the two potential buyers has been taking place over the last few months and is showing no immediate sign of abating with two new competing bids recently. This has caused what a national media outlet refers to as ‘great uncertainty’ for the business, employers and suppliers.

A source said to the Daily Mail: “The panel will shortly be speaking to various parties ready for an auction in the middle of this month. Having such an extended offer period creates great uncertainty for the company.”

There is still the potential for the two potential buyers to bid prior to the auction date and this could still be considered by shareholders in early October.