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CD&R vows to protect Morrisons pension rights after takeover

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By Reuters

– Private equity group Clayton, Dubilier & Rice (CD&R) said the pension rights of the Morrisons management team and employees will be “fully safeguarded” once its takeover offer for the British supermarket chain becomes effective.

Morrisons is at the heart of a $9.5 billion bidding war between U.S.-based CD&R and a consortium led by SoftBank-owned Fortress Investment Group.

CD&R said on Tuesday it does not intend to make any change to the benefits, after trustees of the retailer’s two pension schemes expressed concern that a takeover by either suitor could “materially weaken” the security of the schemes.

Last week, Morrisons backed an offer from CD&R, although its shares jumped above the 285-pence-a-share bid, indicating the battle could carry on.