// Morrisons frontrunner Fortress indicates business review plan if takeover succeeds
// Morrisons investors are preparing for a crunch vote on Fortress’ offer on August 16
// Fortress said that it does not plan to sell a “material” number of stores
Private equity firm Fortress, which had a £6.3 billion offer accepted and recommended to Morrisons’ board, is expected to conduct a wide-ranging review of the grocer, should the takeover succeed.
The US firm said it would conduct “a fuller evaluation of Morrisons and its operations and organisational structure” within the first six months of ownership.
The review would include Morrisons’ property portfolio.
READ MORE: CD&R given deadline to place rival bid in Morrisons takeover race
Morrisons investors are preparing for a crunch vote on Fortress’ offer on August 16.
Fortress said that it does not plan to sell a “material” number of stores.
However, the plans for a “fuller evaluation” are likely to raise concerns among some investors who warn that any buyer will seek to extract value from the property portfolio through sale and leaseback agreements.
Business secretary Kwasi Kwarteng has publicly supported the takeover following talks with the Morrisons leadership team including chief executive David Potts and chair Andy Higginson.
He said this is a “vote of confidence to the UK”.
“It is not a bad thing if foreigners want to come and buy really good assets in your country. It means you are attracting capital, you are attracting investments, and that creates jobs,” he said.
The circular sent to shareholders also included details of more than £300 million in fees that would be raked in by advisers and bankers should the acquisition go ahead.
Bankers, lawyers, PR advisers and accountants acting for Fortress will be paid up to £263 million collectively, while Morrisons will spend up to £49 million to the likes of Rothschild, Jefferies and Shore Capital.
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9 Comments. Leave new
There full ov shit they take ovr Morrisons sell off stores put many people under paid struggle an stobart is al ready make in roads in the distribution morrisons. The list gets longer poor people I feel fr
This takeover will be the end of Morrisons. Why are these American equity firms taking over all companies within the UK
They will to bring the pay rates down to minimum wages for staff cut overpaid management.
The £10 a hour saw staff loosing paid breaks all bonuses overtime premiums ect. A lot of staff are worst off!.
They have been cutting staff & hours for every one.
Top management are balling out with big fat payouts.
As for management to many chefs not enough indians.
They have cut costs to the bone cut staff to the bone having worked for over 10years it, s not expected this take over.
Bad management.
Best not ruin the gluten free range!
Nothing but pure GREED
I work for Morrison’s my store is rented as we all in my store are very worried it will be shut losing 165 jobs slot of people working at my store have been with Morrison’s for over 15 20 30 years
I don’t agree that the Morrisons takeover will create jobs because when things go wrong they will just pull there assets out and take them back to the country of origin leaving worthless company just like Debenhams
I worry for UK food retail if they are taken over. The fact Asda has gone the same way is having an impact on jobs, opening hours already.
Asset stripping has gone on there with the petrol division being hived off to the owner’s petrol company.
It’s not good for choice or long term competition, consumers, jobs and prices.