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