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Daily Mirror
Daily Mirror
Business
Sam Barker

Former B&M Bargains owner sets eyes on Morrisons amid £6.4bn offer

Morrisons is at the centre of a £6.4billion bidding war - and the good news is that its stores are unlikely to be sold off or shut no matter who wins.

In July the bosses of the supermarket chain backed one bid of £6.3billion, from Fortress Investment Group.

Fortress has invested in grocery retail in both North America and Europe, and has invested in Majestic Wine in the UK.

Fortress then hiked its offer to £6.7billion last week. The bidding war has to end on August 27.

A rival bid will be made this week from investment firm Clayton, Dubilier & Rice (CDR), which once owned discount chain B&M.

CDR made an offer to buy Morrisons in June, but the supermarket's bosses turned it down.

The supermarket already has a £6.3bn offer in the bag, but might be able to get more (Getty Images)

CDR is being advised by Sir Terry Leahy, who was the boss of Tesco at the time when Morrisons' chairman Andy Higginson worked for him as chief financial officer.

Experts said Morrisons might have to be broken up if it is sold.

City analysts Bernstein said the new owners would need to sell off part of the supermarket to reclaim some cash.

Bernstein said buyers would struggle to make a profit "without significant asset sales”.

As well as the supermarkets themselves, Morrisons owns petrol stations, food factories and depots.

A second group of analysts, William Woods, said if the price of Morrisons goes up any further then this could mean the buyers have to sell off bits of it.

But both major buyers have promised not to break up Morrisons, the BBC reported.

Fortress has already said it "does not anticipate engaging in any material store sale and leaseback transactions".

Any successful bid would still need to be signed off by the supermarket's shareholders.

Another bid could come from US investment firm Apollo Global, which is reported to be interested in buying Morrisons.

An Apollo statement said it was "in the preliminary stages of evaluating a possible offer for Morrisons".

Morrisons is the fourth-largest supermarket chain in the UK. It has nearly 500 shops and more than 110,000 staff.

It was founded as an egg and butter stall in 1899 in Bradford, Yorkshire, by grocer William Morrison.

It stayed as a northern supermarket chain until it bought out the former Safeway stores in 2004.

Now it has almost 500 supermarkets across England, Wales and Scotland, and even has one in Gibraltar.

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