Thursday, September 23, 2021
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Morrisons bidder strikes deal over grocer’s pension scheme


Morrisons bidder strikes deal over grocer’s pension scheme promising it might be ‘one of the best funded within the UK’


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

Clayton Dubilier & Rice has mentioned it might make sure the retirement pot can be amongst ‘one of the best funded and greatest supported within 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: Non-public fairness suitor Clayton Dubilier & Rice has mentioned it might make sure the Morrisons retirement pot can be amongst ‘one of the best funded and greatest supported within the UK’

The Morrisons scheme is in surplus however trustees had raised issues {that a} debt-fuelled takeover might lead to different collectors getting desire on belongings if the enterprise later bumped into bother.

However chairman of scheme trustees Steve Southern mentioned: ‘CD&R has been proactive in its engagement… delivering a optimistic final result 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.

In the intervening time, a £7billion bid from CD&R is most well-liked by Morrisons, after Fortress and a consortium bid £6.7billion. Nevertheless 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 employees. 

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

Nevertheless, pensions guide John Ralfe mentioned CD&R must be paying ‘a giant dollop of money’ as an alternative of offering property ensures, including: ‘Trustees must be demanding this.’

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