// Clayton, Dubilier & Rice comes to to an agreement with trustees over the supermarket’s pension schemes
// The new agreement cements CDR’s pole position in the race to buy Morrisons
Morrisons suitor Clayton Dubilier & Rice has said it has reached agreement with the pension trustees of the British supermarket chain to provide additional security and support to the schemes, as it seeks to clinch the deal ahead of a rival bidder.
The supermarket has been at the heart of a bidding war between CD&R and fellow private equity firm Fortress, with the former agreeing a £7 billion bid last month.
The agreement cements CDR’s pole position in the race to buy Morrisons, however Fortress could still trump the bid and the battle looks to be heading for an auction.
- Bidding war for Morrisons set to be decided in auction showdown ‘within weeks’
- Trustees warn Morrisons pension schemes could be weakened by takeover
Chairman of the Trustees, Steve Southern, said that under CD&R, the outcome for Morrisons pensioners would be positive.
“We are pleased with the progress made and CD&R’s ability to provide the necessary support and reassurance to the schemes,” he said in a statement.
“CD&R has been proactive in its engagement with the Trustees, with discussions progressing positively and decisively, delivering a positive outcome for all members of Morrisons’ pension schemes.”