Ministers have called for a meeting with executives at British supermarket chain Wm Morrison, where a private equity group will take over £9.5 billion to seek peace of mind for jobs and investments.
On Saturday morning, Morrisons recommended a bid led by Fortress, which owns SoftBank, which offered 252p of shares and 2p of special dividends, along with a long list to protect the company’s employees, suppliers and pension holders.
The deal has garnered political attention since earlier this year as part of a wave of private equity takeovers by British companies.
Business secretary Kwasi Kwarteng is expected to request a meeting with Morrisons chairman Andrew Higginson in the coming weeks, according to people familiar with the situation for seeking jobs, pensions and reassurance about the chain’s UK operations.
In an interview with the Financial Times on Tuesday, Kurteng declined to comment on the meeting’s request, but added that “the situation is being monitored.”
“Morrisons is a historic brand name,” he said. [I am] I’m very interested in seeing how things play out. Before making any hasty judgments, you need to evaluate what is going on. You need to look at behavior, details and performance to make sure certain safeguards are being maintained. ”
Kwarteng added that private equity buying UK companies was “not a bad thing in and of itself” and that the “global UK” will thrive with foreign investment.
Shadow Business Minister Seema Malhotra has urged the government to scrutinize the deal and make commitments from buyers to protect its workforce, pension schemes and supply chains.
Fortress wrote a letter to the government to reassure them of their intentions against Morrisons. © Anthony Devlin/Bloomberg
“The government’s indifferent approach to acquisitions means that UK businesses buy too often with short-term goals and not keeping the interests of the UK economy, businesses, workers and customers in mind,” she said.
Morrisons accepted a Fortress-led offer last month after Clayton, Dubilier & Rice’s 230p shares declined a bid. After losing a bid last year with Asda, another UK supermarket chain, Apollo said Monday it was “in the preliminary stages of evaluating possible offers”.
Fortress wrote a letter to the government giving them reassurance about their intentions for the company. The letter, seen by the FT, states that Fortress is “aware of the broader responsibilities of ownership of a business that has Morrison’s history, culture and significance to the British public”.
This letter was signed by Joshua Pack, Co-Chief Investment Officer of Fortress’s Credit Fund on behalf of the company. “I want to be completely confident in my commitment to becoming a supportive and responsible owner of Morrisons upon successful completion of the transaction,” Pack said.
Rooted in the market stalls the group opened in 1899, Morrisons’ future promises include maintaining the company’s headquarters in West Yorkshire, protecting pensions and maintaining a minimum wage contract of £10 an hour for its employees. . .
“We are committed to being great stewards of the Morrisons through the next stage of evolution.”
“The only risk worth any level of discussion is the extent of the UK Secretary of State’s involvement in business, energy and industrial strategy,” Mark Kelly, managing director of investment bank Cowen, said in a memo on Monday.
However, he added that Fortress did a lot of work to solve this problem. “In fact, the risk of intervention by the UK government is very low.”
The UK’s largest asset manager, Legal & General Investment Management, warned on Monday that private equity funds should not take over Morrison “for the wrong reason”, including profiting from the supermarket chain’s asset portfolio or “pushing the company into debt.” .
Union Usdaw also expressed concerns about the deal and said it was seeking “urgent” meetings with management and potential new owners “to protect the long-term future of the business in this process.”
Morrisons declined to comment.
The mention sources can contact us to remove/changing this article
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]