Jul 22, 2021

Bankers and advisers to collect £300m from planned Morrisons takeover

Bankers, financiers and other advisers are set to collect roughly £300m in fees from the planned £9.5bn acquisition of UK grocery chain Wm Morrison by a private equity consortium led by US fund Fortress Investment. Morrisons, which traces its origins back to a Bradford market stall in 1899, expected to incur £49m of costs, mostly fees to advisers Rothschild and brokers Shore Capital and Jefferies. The terms of Fortress's bid do not require Morrisons to pay a break fee if it recommends a rival bid. At least three-quarters of Morrisons investors that vote on the Fortress offer must approve the proposal, but some major shareholders have voiced concerns about aspects of the transaction. Fortress can delay proceeding with the takeover in the unlikely event that the UK's competition regulator refers the takeover for a detailed "Phase 2" inquiry, or the UK government signals that it will use powers granted during the Covid pandemic to block it.

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