Morrisons’ potential buyer CD&R reaches pension agreement

Morrisons’ potential personal fairness buyer CD&R reaches agreement with grocery store group’s pension trustees

  •  CD&R agrees to offer further safety and assist to the pension schemes
  • The personal fairness group final week reached a £7bn deal to purchase Morrisons 
  • But it might nonetheless see its bid trumped by rival PE agency Fortress Investment Group

The personal fairness home in line to accumulate Morrisons has reached an agreement with the grocery store group’s pension trustees in its newest transfer to safe the deal forward of rival bidders.

Clayton Dublilier & Rice, which final week agreed a £7billion deal to accumulate Morrisons, mentioned on Tuesday it had reached an agreement with the businesses’ pension schemes for a ‘comprehensive mitigation package to provide additional security and covenant support’.

As effectively as working with Morrisons’ trustees to make sure higher understanding of the personal fairness group’s intensions for the grocery store, CD&R mentioned it had agreed to offer further protections to members’ advantages underneath the pension schemes.

CD&R have agreed a ‘comprehensive mitigation package' for employees' pension schemes

CD&R have agreed a ‘comprehensive mitigation package’ for employees’ pension schemes

For example, it has agreed to contribute ‘additional security’ to the present pension funding partnership construction within the type of additional properties.

In addition, CD&R mentioned there can be ‘enhanced governance provisions’ for the schemes, and knowledge sharing preparations with the trustees ‘to ensure full awareness and alignment among stakeholders’

Despite final week’s agreement, CD&R might nonetheless see its bid trumped by a rival consortium led by Softbank-owned Fortress Investment Group, with an public sale course of lined up for subsequent month.

‘CD&R believes that its approach to the trustees and collaboration with Morrisons in this process provides a framework for positive engagement with all other important stakeholders of Morrisons and it looks forward to working with Morrisons and these stakeholders in a similar way as the CD&R Offer progresses and CD&R delivers on its stated intentions,’ the personal fairness group mentioned.

Chairman of the trustees of the Morrisons schemes Steve Southern added: ‘CD&R has been proactive in its engagement with the Trustees, with discussions progressing positively and decisively, delivering a positive outcome for all members of Morrisons’ pension schemes.’