Is Sainsbury’s the new takeover target for a US firm?

Fortress, a US-based investment company, which missed out on acquiring Morrisons due to an auction battle, revealed it is still eager to buy a UK company.

With Sainsbury’s becoming the top riser on the FTSE 100 Index in the second week of October, investor experts think the supermarket chain may be the next target for Fortress.

Sainsbury’s shares increased by nearly 5 per cent to 298p, but Tesco also showed a good performance.

On the UK’s index of blue-chip stocks, Tesco increased by 2 per cent at 253p and has therefore also caught the eye of other private equity firms.

A financier at Fortress, Joshua Pack, shared the firm’s interest again at the start of October by saying: “the UK remains a very attractive investment environment from many perspectives, and we will continue to explore opportunities to help strong management teams grow their businesses and create long-term value.”

The investment company missed out on acquiring Morrisons, being beaten out in an auction, by Clayton, Dubilier & Rice (CD&R).

Fortress offered a 286p share and CD&R a 287p, which valued the UK’s fourth largest supermarket chain at £7.1 billion. Morrisons’ shareholders approved the takeover by CD&R on 19 October 2021.

Morrisons’ Chairman said he expects CD&R to keep its word and hold onto its assets rather than sell them.

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Maung Aye
Maung is a partner in our Corporate and Commercial department. He joined Mackrell.Solicitors following corporate law positions in London and in a leading regional firm in Essex. Maung read European Legal Studies at Lancaster University and the Università degli Studi di Trento and is a fluent Italian speaker.