MPs have waded into the Morrisons private equity takeover row, asking regulators whether they may be able to intervene.
In a letter to the Competition and Markets Authority (CMA), Darren Jones, chairman of the House of Commons’ Business Committee, raised concerns about the £5.5billion bid for the supermarket group by US private equity giant Clayton Dubilier & Rice (CDR).
In a sign of the growing scrutiny of private equity firms, Jones asked the CMA whether it had powers to investigate the bid, and what issues the watchdog might consider.
MPs have raised concerns about the £5.5bn bid for Morrisons by US private equity giant Clayton Dubilier & Rice
Jones, Labour MP for Bristol North West, said: ‘British supermarkets are the latest area of interest for private equity and other buyers using significant amounts of debt.
‘Some stakeholders have raised concerns about what this might mean for the protection of jobs, pension funds and supermarkets presence on British high streets.
Whilst activity levels are currently low, I am keen to understand what regulatory oversight is in place to ensure any future transactions protect consumers and workers.’
Morrisons has tried to fight off CDR, and shareholders including Legal & General have hit out at the ‘lowball’ bid.
But private equity predators have been circling the stock market with renewed determination since the pandemic began.
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