Morrisons agree £6.2bn takeover deal

Supermarket chain Morrisons has accepted a £6.3bn takeover bid by a US investment group led by the owner of Majestic Wine.

It's after they rejected a £5.5bn offer last month – the offer is subject to shareholder approval.

The Labour party are calling on the UK government to scrutinise the deal while union Unite want talks to ensure jobs are protected with 60 stores across Scotland

Andrew Higginson, chairman of Morrisons, said: “We believe that the offer represents a fair and recommendable price for shareholders which recognises Morrisons' future prospects.

“Morrisons is an outstanding business and our performance through the pandemic has further improved our standing.”

Seema Malhotra, Labour's shadow minister for business and consumers, said: “Britain's supermarkets provide an essential national service and the Covid crisis has highlighted their importance to customers, communities and our retail and farming industries.

“Any takeover bid must therefore be closely scrutinised by the Government.”

Richard Lim, chief executive of research consultancy Retail Economics said: “This signals the biggest shakeup in the UK grocery sector for over a decade.

“The grocery sector is transitioning through a period of enormous change as the impact of the pandemic has shifted buying behaviour.

“Navigating the fast-paced change in market dynamics, customer behaviour and the pressures on the food supply chain in a post-Brexit environment will be no easy feat.

“Success will hinge on the new owners gaining the support of experienced key members of the leadership team to execute on the future strategy.

“This will be critical given the pace of change sweeping through the industry.''

Adrian Jones, Unite national officer representing Morrison's warehouse and distribution workers said: “Unite is now seeking urgent talks with Morrison's to protect our members' jobs and conditions.

“We won't allow another takeover of a strong UK business see the workers trampled over as the boardroom and shareholders rush towards their bonanzas.

“Morrison's is unique in UK supermarkets in that is owns its supply chain, from the farm to the warehouse.”

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