Morrisons lines up ex-Tesco boss as new chairman

Sir Terry Leahy would replace Andrew Higginson, Morrisons’ current chairman
// Former Tesco chief executive Sir Terry Leahy lined up for Morrisons chairman role
// Leahy remains in pole position if the £7bn takeover offer from private equity firm CD&R advances
// Leahy is also a senior adviser at CD&R

Morrisons has reportedly lined up the former Tesco chief executive Sir Terry Leahy as its next chairman, as the supermarket’s takeover war continues.

Leahy is in pole position to fill the role due to his retail nous and previous track record at discounter B&M, The Telegraph reported.

He is being lined up as the next chairman of Morrisons if the £7 billion takeover offer from US private equity firm CD&R is successful.

READ MORE: Morrisons strikes £7bn takeover offer with US private equity firm

Leahy is also a senior adviser at CD&R.

B&M chief executive Simon Arora reportedly had a good working relationship with Leahy when he was chairman of the discounter, which led to a fruitful exit for CD&R after it floated the chain on the London Stock Exchange.

The same would apply to Morrisons chief executive David Potts, who used to work with Leahy at Tesco.

Morrisons denied that Potts would be opposed to working for Leahy again, despite rumours.

A clear out of the non-executive directors is also on the cards, which is standard practice after a takeover deal.

Two CD&R executives who are working on the Morrisons deal – Marco Herbst and Gregory Lai – could take a place on the supermarket’s board.

Leahy was at the helm of Tesco for 14 years as chief executive, overseeing a period of rapid growth, before retiring in 2010.

He would replace Andrew Higginson, Morrisons’ current chairman, who joined in 2017.

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