Apollo Global Management is currently in talks to join a consortium led by Fortress Investment Group, the private equity firm recently announced. The consortium is expected to shortly complete a 6.3 billion pound ($8.6 billion) takeover of British supermarket chain Morrisons. With regards to this transaction, Apollo has declared that it has no intention of submitting a bid for Morrisons other than as part of the Fortress-led consortium.
Considering that Apollo was previously considering its own bid, the decision to join the consortium should result in lower levels of competition for the Morrisons acquisition.
The consortium, consisting of firms such as Canada Pension Plan Investment Board and Koch Real Estate Investments, has exceeded a 5.52 billion pound unsolicited proposal from Clayton, Dubilier & Rice (CD&R). The latter proposal was rejected by Morrisons in June.
Apollo revealed that, prior to considering becoming part of the consortium, the private equity firm was aware of the group’s intention to take over Morrisons. “Should these discussions lead to any transaction, Apollo would be fully supportive of Fortress’s stated intentions regarding Morrisons,” Apollo confirmed.
