Morrisons bidder strikes deal over grocer’s pension scheme

Morrisons bidder strikes deal over grocer’s pension scheme promising it could be ‘the very best funded within the UK’

One of the non-public fairness companies making an attempt to purchase Morrisons has struck a deal with the grocery store’s pension scheme.

Clayton Dubilier & Rice has mentioned it could make sure the retirement pot could be amongst ‘the best funded and best supported in the UK’.

It has pledged to place down additional properties as collateral for the scheme if it wins the bid battle for Morrisons and to assist plans for a member buyout inside a decade.

Pension pledge: Private fairness suitor Clayton Dubilier & Rice has mentioned it could make sure the Morrisons retirement pot could be amongst ‘the very best funded and greatest supported within the UK’

The Morrisons scheme is in surplus however trustees had raised considerations {that a} debt-fuelled takeover might end in different collectors getting desire on belongings if the business later bumped into hassle.

But chairman of scheme trustees Steve Southern mentioned: ‘CD&R has been proactive in its engagement… delivering a positive outcome for all members of Morrisons’ pension schemes.’

CD&R and personal fairness agency Fortress are combating to purchase Morrisons, in a contest that appears prone to be settled by an public sale this month.

At the second, a £7billion bid from CD&R is most well-liked by Morrisons, after Fortress and a consortium bid £6.7billion. However it might nonetheless be trumped within the public sale.

The Morrisons retirement saver plan and the Safeway pension scheme take care of the retirement pots of round 85,500 present and former workers. 

Both are well-funded, and are nearly £700million in surplus. Trustees hope to get the pension schemes to a ‘buy-out’ deficit inside the subsequent ten years.

However, pensions guide John Ralfe mentioned CD&R needs to be paying ‘a big dollop of cash’ as a substitute of offering property ensures, including: ‘Trustees should be demanding this.’


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