Fortress Investment Group Inches Closer to Closing the Morrisons Acquisition
Despite the explosion of e-commerce over the last decade, the UK is among the countries where retail stores are still performing well. With this in mind, it’s no surprise that the New York based alternative asset management firm Fortress Investment Group has been keen to bag a share of the country’s lucrative market.
Earlier on, the firm has successfully acquired Majestic Wines, which had been one of the most prominent retailers in the country and has been turning it around to get it back to its lost glory.
In its latest move, the alternative asset manager has been working on acquiring Morrisons, the country’s fourth-largest retailer. Although this pursuit hasn’t been smooth sailing, it now seems like Fortress Investment Group is a lot closer to closing the Morrison’s acquisition deal.
Sweetening the deal
Not so long ago, the New York alternative asset manager announced that it had increased its offering for the acquisition to £6.7 billion from the earlier offer of £6.5. This move is aimed at sweetening the deal and fast-tracking the acquisition. The new offering is about £1 billion more than what had been offered by a rival bidder, Clayton, Dubilier & Rice, and was rejected.
Additionally, the new offering would mean that each shareholder would be receiving 270 pence per share up from the 253 pence they would have gotten with the initial offer and a lot more than the 230 pence they have earned from the rival bidder.
Though the offer from Fortress Investment Group is impressive, the acquisition is expected to be a highly competitive affair as other notable enterprises have expressed interest in acquiring Morrisons. Among these expected competitors is the Singapore Wealth Fund and the e-commerce giant Amazon. Fortress Investment Group has promised to offer an additional 2 pence dividend per share for each shareholder to sweeten the deal. Moreover, it said that it would be letting the retailer’s current management team stay in control. Go Here for related Information.