Morrisons bidder plans to control Cayman Islands supermarket – .

Morrisons bidder plans to control Cayman Islands supermarket – .

Asda, which was acquired last year in a private equity transaction led by billionaires from Blackburn-based gas station Issa Brothers, is also owned overseas through a Jersey based vehicle.

Darren Jones, a Labor MP who chairs the Trade, Energy and Industrial Strategy Committee, said: Without any rules or regulatory intervention, all is madness and an insult to UK taxpayers.

Offer documents also showed that CD&R could drop the takeover if the UK competition regulator returns the deal for a full “phase two” investigation.

CD&R said it would look to combine its 918 Motor Fuel Group locations with the 339 owned by Morrisons, opening Morrisons convenience stores at the sites. Such a decision could potentially be subject to close scrutiny by the Competition and Markets Authority.

Meanwhile, the buyout company again insisted that it had no intention of offloading a “material” portion of Morrisons freehold properties. However, these commitments are non-binding.

Similar to Fortress, CD&R has said it will embark on a review of the supermarket chain in a few months, including the Morrisons real estate portfolio. Morrisons has 497 stores, 86% of which are freehold, 20 manufacturing and packaging sites, and 9 distribution centers.

Last month, pension trustees warned bidders that the proposed debt-fueled buyouts “would significantly weaken” Morrisons’ ability to support the retirements of 85,000 current and former workers.

The Morrisons board changed sides at the end of August and recommended that investors support the CD&R offering. The directors had previously favored a £ 6.7bn bid from Fortress. The two suitors are expected to borrow heavily against Morrisons to finance an acquisition.

Morrisons declined to comment.


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