It might be next month, or it might be the month afterwards – but there can no longer be any question that Morrisons will soon be sold off to one of a surprisingly long queue of bidders.
There is already speculation swirling around Sainsbury’s. And even the mighty Tesco, once the biggest beast in the British retail jungle, can no longer be regarded as safe from a takeover. The entire grocery industry is in play in a way that it hasn’t been for many years.
Read the full article on The Telegraph website (PayWall)
Related item:
Buyout Frenzy Adds £8bn To UK Supermarket Shares – Read the full article on the This is Money website
NAM Implications:
- All mults appeal because of a combination of strong demand and cash flow, negative working capital (sell for cash, pay suppliers in 40 days), largely self-owned estates for sale & leaseback.
- Private equity come in with a 5-year agenda for re-floatation.
- Focus on financial output and cut anything that moves.
- NAMs best conduct what-ifs for all mults on these lines…
- …and formulate appropriate strategies.
- Fast!
