Apollo Global Management is in talks to join forces with Fortress Investment group over the recommended offer for Wm Morrison, Britain’s fourth-largest supermarket chain.
A trio of private investment groups led by SoftBank-owned Fortress this month struck a £9.5bn deal to acquire the supermarket chain. Apollo had said it was also looking at Morrisons, sparking the possibility of a bidding war for the supermarket.
But on Tuesday Apollo said it was no longer considering its own offer but was instead in talks to join the investment group led by Fortress.
The Fortress-led bid values the equity of Morrisons at £6.3bn before the inclusion of £3.2bn of net debt.
“Apollo notes Fortress’s intentions regarding the Morrisons business and all its stakeholders,” the statement said. “Should these discussions lead to any transaction, Apollo would be fully supportive of Fortress’s stated intentions regarding Morrisons.”
Under the terms of the deal revealed on July 4, Fortress, the Canadian pension fund CPPIB and a unit of Koch Industries will pay 252p a share along with backing a 2p special dividend to buy the grocer.
The deal came two weeks after the Bradford-based group said it had rejected an unsolicited 230p-a-share approach from the private equity group Clayton, Dubilier & Rice.