Morrisons is to be acquired by US private equity firm Clayton, Dubilier & Rice (CD&R) after winning an auction with a £7.1 billion offer.
Outbidding Fortress Investment Group, CD&R offered 278p in cash per Morrisons share during the auction held on Saturday 2 October.
CD&R’s winning bid was 2p above the firm’s existing offer, which was recommended in August.
The final offer represents a 61% premium on Morrisons’ share price before takeover interest publicly emerged nearly four months ago.
In June, Morrisons rejected a buy-out offer from CD&R saying the £5.5 billion deal “significantly undervalued” the business.
“Today’s final offer from CD&R represents excellent value for shareholders while at the same time protecting the fundamental character of Morrisons for all stakeholders,” said Morrison’s Chairman Andrew Higginson.
“CD&R have good retail experience, a strong record of developing and growing the businesses in which they invest, and they share our vision and ambition for Morrisons.
“We remain confident that CD&R will be a responsible, thoughtful and careful owner of an important British grocery business.”
He added: “Shareholders will now have the final say and, if the offer is approved, the board is confident that Morrisons will continue to go from strength to strength under CD&R’s ownership.”
Morrisons’ shareholders will vote on the final offer on 19 October.