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UK retailer Morrisons accepts Fortress buyout offer

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On Saturday, British supermarket chain Morrisons accepted the buyout offer from the Fortress Investment Group, for 6.3 billion pounds, or 8.70 billion dollars.

Morrisons
Under the terms of the deal, Morrisons shareholders will receive 254 pence per share.

Fortress offer, backed by the Canada Pension Plan Investment Board and Koch Real Estate Investments, exceeds Clayton Group’s previous $7.60 billion buyout proposal.

Morrisons, which is the fourth-largest UK retailer by revenue behind Tesco, Sainsbury’s and Asda, said the offer represented a 42% premium over its closing price on June 18 – which was at 178 pence share – the last business day before the CD&R offer.

The action closed on Friday at 243 pence, a price valuing the group at $8 billion.

The Fortress Investment group managed in March 53 billion of assets, or $52 billion.

CD&R did not wish to speak immediately. Under UK law, the group has until July 17 to make a new offer.

Morrisons meanwhile has a partnership deal with Amazon and lingering rumors the possibility that the e-commerce giant will also make an offer on the UK channel. Morrisons said an initial unsolicited takeover offer had been made by Morrisons. Fortress on May 4 at 220 pence a share. The offer was not made public. Fortress subsequently made four more offers before reaching a value of 254 pence per share on June 5.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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