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News
Retail: Morrisons takeover target
British supermarket group, WM Morrisons could become an acquisition target. It is believed that a private equity consortium consisting of Texas Pacific, CVC and Permira are finalising the plans for a £6 billion takeover bid for the grocery chain, which has been struggling financially after last year’s takeover of rival retail chain Safeway.
The possible offer comes after Morrisons posted a 6% rise in sales for the 16 weeks to 21 May 2006, suggesting the supermarket is back on track following a £313 million profit loss in 2005.
Earlier this year chairman Sir Ken Morrison resigned in relation to financial difficulties. The subsequent appointment of Marc Bolland (formerly with Heineken) has raised optimism among city investors. Morrisons is the UK’s fourth largest retailer with a 12.5% market share according to TNS superpanel.
© db August 2006