US owners of Morrisons plan to sell property worth £500million

The US owners of Morrisons plan to sell a property worth £500million just months after the takeover.

One of the commitments Clayton Dubilier and Rice (CD&R) made in order to gain approval for its £7bn takeover was that it would not sell and then lease its valuable store portfolio at least at beginning of his ownership.

The tender document said: “Bidco [the company formed by the firm to implement the deal] recognizes that the high proportion of freehold ownership of the Morrisons store estate is a particular strength of the business which has been carefully preserved over many years and will continue to be a cornerstone of Morrisons.

“Bidco does not intend to engage in any sale and leaseback transactions of materials stores.”

According to Sky News, with this in mind, CD&R is seeking to appoint advisers to arrange the sale of several of its manufacturing and distribution facilities across the UK in a bid to recoup some of its investment.

In the meantime, a spokesman for Morrisons said it experienced a decline in profits in the three months to January 30, with underlying quarterly profits falling nearly 10% to £316m due to inflationary pressures and it could be made worse. by the Russian invasion of Ukraine.

As a final twist in the story, Sky News has also reported that CD&R is considering selling Motor Fuel Group (MFG), the UK’s largest independent service station operator due to pressure from the Competition Authority and Markets (CMA) after taking over Morrison Service Stations.

Seeking to raise around £5bn, one of the potential buyers is fellow US investment firm Fortress which has also made an offer for Morrisons.

Thanks for reading “US owners of Morrisons plan to sell property worth £500m” aDon’t forget that all articles produced by Euro Weekly News are accessible free of charge.

Comments are closed.