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U.K.'s CMA Considers Undertakings Offered By CD&R To Clear GBP 7.1 Bln Take Over Of Wm Morrison

The U.K. Competition and Markets Authority said Thursday that it has considered undertakings offered by Clayton Dubilier & Rice LLC to clear its about 7.1 billion pounds take over of the U.K. supermarket chain Wm Morrison Supermarkets plc (MRW.L).

On 24 March 2022, the CMA announced that it is or may be the case that the merger has resulted or may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom.

On 31 March 2022, Clayton, Dubilier and Rice or CD&R offered undertakings to the CMA.

The CMA said Thursday it considers that there are reasonable grounds for believing that the undertaking offered, or a modified version of it, might be accepted by the CMA to remedy the substantial lessening of competition identified by the CMA.

The CMA now has until 9 June 2022 to decide whether to accept the undertakings, with the possibility to extend this timeframe to 4 August 2022 if it considers there are special reasons for doing so.

In October 2021, CD&R won an auction to take over the U.K. supermarket chain Wm Morrison Supermarkets.

U.K. Takeover panel had established an agreed auction procedure in September 2021 for the resolution of the competitive situation between CD&R and Fortress Investment Group in relation to the acquisition of Morrison.

CD&R offered 287 pence per Morrisons share, against a rival bid of 286 pence per share from Fortress.

The CD&R final offer valued the entire issued and to be issued share capital of Morrisons at about 7.1 billion pounds on a fully diluted basis and implies an enterprise value of 9.8 billion pounds.

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