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On 8 September 2021, Wm Morrison Supermarkets plc (Morrisons) that it is in discussions with the Takeover Panel to commence an auction procedure to facilitate the resolution of competitive bids from private equity firms Clayton, Dubilier & Rice (CD&R) and Fortress Investment Group (which is leading a consortium comprised of US, Canadian and Singaporean bidders). Shareholder meetings to approve the offers from CD&R and the Fortress-led consortium are scheduled for the week commencing 18 October 2021 and the auction procedure will be launched prior to these meetings.

Just last month, CD&R outbid the Fortress-led consortium by £300m, agreeing a £7bn offer which received the unanimous recommendation of Morrisons’ board (see: ). Since CD&R’s offer has been announced, Morrisons’ shares have continued to trade above the offer price of £2.85 per share, closing at £2.92 on 8 September 2021.

This will be the second time this year that the Panel has intervened to resolve competitive bids by way of auction, having intervened in the battle for Vectura Group plc in August (see: ). The Carlyle Group bowed out just before the Vectura auction commenced, but the sustained higher than offer price trading of Morrisons’ shares and and rivalry between CD&R and the Fortress-led consortium suggests that a higher offer will emerge.

Marker Tracker will continue to monitor these transactions as they develop.