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A takeover bid for the supermarket chain Morrisons by a private equity-backed consortium has been increased to £6.7bn following speculation of a rival offer.

The group led by Fortress Investment Group has increased its previous financial pitch for the Bradford-based grocer, which had been agreed by management, by £400m.

It said it upped the offer amid “speculation regarding a possible counter-offer by Clayton, Dubilier & Rice (CD&R)”, a rival US private equity firm which saw a £5.5bn approach swiftly rejected by Morrisons in June.

Shopping trolleys are parked at a Morrisons supermarket in south London
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Fortress has pledged to be a ‘responsible long-term steward of this great British company’

The current bidder said: “(Fortress) remains committed to becoming the new owner of Morrisons and to being a responsible long-term steward of this great British company through the next stage of its evolution.”

Morrisons said its board had also re-confirmed its unanimous recommendation of the offer.

The company said in a stock market statement: “Morrisons directors believe that the increased Fortress offer is in the best interests of Morrisons shareholders as a whole, and accordingly unanimously recommend that Morrisons shareholders vote in favour of the resolutions required to implement the increased Fortress offer.”

The UK takeover regulator has given CD&R a deadline of Monday 9 August to either place its own firm bid for the retailer or walk away.

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The increased Fortress bid also comes after a number of Morrisons’ investors, including its largest shareholder Silchester, said they would not back the original 254p per share offer agreed by the board, indicating it was too low.

Silchester, which holds a 15.1% stake in the group, had said it was “not inclined” to back that deal and wanted the board to allow more time for offers to emerge that might better the initial Fortress bid.

The latest offer values the company at 272p per share.

Shareholders in Morrisons are due to vote on the Fortress bid on 16 August.

Analysts have speculated that Amazon, which has a partnership deal with Morrisons, could still enter the fray.

Amazon
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Analysts have speculated Amazon could still enter the fray

The takeover talk has prompted concerns from MPs about the potential for new owners selling off property assets or reducing the rights of workers.

The original Fortress-led deal agreed by the Morrisons board included commitments to the current management team, strategy and its £10 per hour shop floor wage.

Fortress also said it “does not anticipate engaging in any material store sale and leaseback transactions”.

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Donald Trump tells UK to ‘get rid of windmills’ and says raising windfall tax on North Sea oil is ‘big mistake’

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Donald Trump tells UK to 'get rid of windmills' and says raising windfall tax on North Sea oil is 'big mistake'

Donald Trump has said the UK is making “a very big mistake” in its fossil fuel policy – and should “get rid of windmills”.

In a post on Friday on his social media platform, Truth Social, Mr Trump shared news from November of a US oil producer pulling out of the North Sea, a major oil-producing region off the Scottish coast.

“The UK is making a very big mistake. Open up the North Sea. Get rid of windmills!”, the US president-elect wrote.

The Texan oil producer Apache said at the time it was withdrawing from the North Sea by 2029 in part due to the increase in windfall tax on fossil fuel producers.

North Sea oil rig
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North Sea oil rig. Pic: Reuters

The head of Apache’s parent company APA Corporation said in early November it had concluded the investment required to comply with UK regulations, “coupled with the onerous financial impact of the energy profits levy [windfall tax] makes production of hydrocarbons beyond the year 2029 uneconomic”.

Chief executive John Christmann added that “substantial investment” will be necessary to comply with regulatory requirements.

Mr Trump used a three-word campaign pledge “drill, baby, drill” during his successful election campaign, claiming he will increase oil and gas production during his second administration.

In the October budget announcement, UK Chancellor Rachel Reeves raised the windfall tax levied on profits of energy producers to 38%.

Called the energy price levy, it is a rise from the 25% introduced by Rishi Sunak in 2022 as energy prices soared following Russia’s invasion of Ukraine.

Many oil and gas businesses reported record profits in the wake of the price hike.

The tax was intended to support households struggling with high gas and electricity bills amid a broader cost of living crisis.

Apache is just one of a glut of firms that made decisions to alter their North Sea extraction due to the Labour policy.

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Business, the economy and the pound in your pocket – what to expect from 2025

Energy bills become more expensive

Even before the new government was elected, three companies, Jersey Oil and Gas, Serica Energy and Neo Energy – announced they were delaying, by a year, the planned start of production at the Buchan oilfield 120 miles to the north-east of Aberdeen.

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SME lender Tide rises to challenge with new fundraising

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SME lender Tide rises to challenge with new fundraising

Tide, the business banking services platform, has hired advisers to orchestrate a fresh share sale as it pursues rapid growth in the UK and overseas.

Sky News understands that Tide has been holding talks with investment banks including Morgan Stanley about launching a primary fundraising worth in excess of £50m in the coming months.

The share sale may include both issuing new stock and enabling existing investors to participate by offloading part of their holdings, according to insiders.

It was unclear at what valuation any new funding would be raised.

Tide was founded in 2015 by George Bevis and Errol Damelin, before launching two years later.

It describes itself as the leading business financial platform in the UK, offering business accounts and related banking services.

The company also provides its 650,000 SME ‘members’ in the UK a set of connected administrative solutions from invoicing to accounting.

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It now boasts a roughly 11% market share in Britain, along with 400,000 SMEs in India.

Tide, which employs about 2,000 people, also launched in Germany last May.

The company’s investors include Apax Partners, Augmentum Fintech and LocalGlobe.

Chaired by the City grandee Sir Donald Brydon.

Tide declined to comment on Friday.

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Hammond-backed outsourcer Amey among bidders for £300m Telent

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Hammond-backed outsourcer Amey among bidders for £300m Telent

An outsourcing group backed by Lord Hammond, the former chancellor of the exchequer, is among the suitors circling Telent, a major provider of digital infrastructure services.

Sky News has learnt that Amey, which endured years of financial difficulties before being taken over by two private equity firms in 2022, has tabled an indicative offer to buy Telent.

Industry sources expect a deal to be worth more than £300m, with a next round of bids due later this month.

Amey is part-owned by Buckthorn Partners, where Lord Hammond is a partner.

The outsourcer was previously owned by Ferrovial, the Spanish infrastructure giant, but ran into financial trouble before being sold just over two years ago.

It announced earlier this week that it had completed a refinancing backed by lenders including Apollo Global Management, HSBC and JP Morgan.

Amey is understood to be competing against at least one other trade bidder and one financial bidder for Telent.

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Once part of Marconi, one of Britain’s most famous industrial names, Telent ended up under the control of JC Flowers, the private equity firm, as part of a deal involving Pension Insurance Corporation, the specialist insurer, several years ago.

It provides a range of services to telecoms and other communications providers.

Amey declined to comment, while Telent could not be reached for comment.

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