Investment giant Apollo has said it considering launching its own bid to buy Morrisons after the supermarket chain agreed a 拢6.3 billion private equity takeover offer on Saturday.
New-York based asset manager Apollo Global Management confirmed that it is 鈥渋n the preliminary stages of evaluating a possible offer for Morrisons鈥 on behalf of investment firms managed by Apollo.
It added that no formal approach has yet been made to the board of the Bradford-based chain.
The interest from Apollo comes two days after Morrisons told investors it had agreed a 拢6.3 billion bid from a consortium of investment groups.
The offer, led by Softbank-owned Fortress which has partnered with Canada Pension Plan Investment Board and Koch Real Estate Investments, will see shareholders receive 252p per share plus a 2p special dividend.
The agreement came almost two weeks after private equity firm Clayton, Dubilier & Rice (CD&R) made an approach last month.
In a statement on Monday, Apollo said: 鈥淣o approach has been made to the board of Morrisons.
鈥淭here can be no certainty that any offer will be made, nor as to the terms on which any such offer might be made.鈥
Fortress has invested in grocery retail in both North America and Europe, and has invested in Majestic Wine in the 海角视频.
In the US, Fortress has invested in the grocery industry, petrol forecourt stations and retail and restaurants.
Andrew Higginson, chairman of Morrisons, said on Saturday: 鈥淭he Morrisons directors believe that the offer represents a fair and recommendable price for shareholders which recognises Morrisons鈥 future prospects.
鈥淢orrisons is an outstanding business and our performance through the pandemic has further improved our standing and enabled us to enter the discussions with Fortress from a hard-won position of strength.
鈥淲e have looked very carefully at Fortress鈥 approach, their plans for the business and their overall suitability as an owner of a unique British food-maker and shopkeeper with over 110,000 colleagues and an important role in British food production and farming.
鈥淚t鈥檚 clear to us that Fortress has a full understanding and appreciation of the fundamental character of Morrisons.
鈥淭his, together with the very clear intentions they have set out today, has given the Morrisons directors confidence that Fortress will support and accelerate our plans to develop and strengthen Morrisons further.鈥
Joshua A Pack, managing partner of Fortress, said: 鈥淲e believe in making long-term investments focused on providing strong management teams with the necessary flexibility and support to execute their strategy in a sustainable and value-enhancing manner.
鈥淲e fully recognise Morrisons鈥 rich history and the very important role Morrisons plays for colleagues, customers, members of the Morrisons pension schemes, local communities, partner suppliers and farmers.
鈥淲e are committed to being good stewards of Morrisons to best serve its stakeholder groups, and the wider British public, for the long term.鈥
Seema Malhotra, Labour鈥檚 shadow minister for business and consumers, said: 鈥淏ritain鈥檚 supermarkets provide an essential national service and the Covid crisis has highlighted their importance to customers, communities and our retail and farming industries.
鈥淎ny takeover bid must therefore be closely scrutinised by the Government.
鈥淢inisters must urgently work with Morrisons and the consortium to ensure that crucial commitments to protect the workforce and the pension scheme are legally binding, and met.
鈥淢inisters must also ensure legal promises are made about the integrity and future of the business, including any impact on the supply chain and distribution centres.鈥
Richard Lim, chief executive of research consultancy Retail Economics said: 鈥淭his signals the biggest shakeup in the 海角视频 grocery sector for over a decade.
鈥淭he grocery sector is transitioning through a period of enormous change as the impact of the pandemic has shifted buying behaviour.
鈥淣avigating the fast-paced change in market dynamics, customer behaviour and the pressures on the food supply chain in a post-Brexit environment will be no easy feat.
鈥淪uccess will hinge on the new owners gaining the support of experienced key members of the leadership team to execute on the future strategy.
鈥淭his will be critical given the pace of change sweeping through the industry.鈥
Adrian Jones, Unite national officer representing Morrisons鈥 warehouse and distribution workers said: 鈥淯nite is now seeking urgent talks with Morrisons to protect our members鈥 jobs and conditions.
鈥淲e won鈥檛 allow another takeover of a strong 海角视频 business see the workers trampled over as the boardroom and shareholders rush towards their bonanzas.
鈥淢orrisons is unique in 海角视频 supermarkets in that is owns its supply chain, from the farm to the warehouse.
鈥淢orrisons workers have made this business strong and profitable 鈥 they deserve to have their dedication rewarded by the owners.
鈥淯nite will meet urgently with the management team to turn their promises that the workers鈥 jobs and terms will not be undermined into unbreakable guarantees.
鈥淥nly with such cast-iron guarantees can there be any hope of Unite and our members cooperating with this sale.鈥
Joanne McGuinness, national officer of the shopworkers鈥 union Usdaw said: 鈥淲e are seeking urgent meetings with Morrisons鈥 current management and the prospective new owners to ensure that our members鈥 interests and the long-term future of the business are protected throughout this process.
鈥淚n the meantime we are providing our members with the support and advice they need through this period of uncertainty.鈥
