Morrisons fends off Issa brothers’ EG Group in battle for McColl’s
Morrisons has emerged victorious against EG Group in gaining control over McColl’s Retail Group, it has been reported.
The supermarket giant had upped its offer to snap up the beleaguered newsagent operator after a last minute battle with the Issa brothers’ EG Group.
According to Sky News, the chain beat down its competition after making an offer to totally preserve the business’s estate and workforce.
PwC was expected to make an announcement on Monday, outlining that Morrisons will acquire McColl’s as soon as it enters insolvency proceedings in a pre-pack administration process.
The victory for Morrisons comes after the grocer pledged to stick to all outstanding pension obligations, a source close to the matter told Sky News.
The supermarket had also promised McColl’s lenders that they would be repaid immediately in full, helping to clinch the deal for Morrisons.
It had been reported over the weekend that McColl’s creditors were inclined to back an offer proposed by EG Group, which first pledged to repay creditors in full.
Lenders rejected Morrisons’ prior offer, which involved taking on £100m worth of debt and paying lenders back when the loans expired.
However, Morrisons pledged to retain the “vast majority” of jobs and stores, with 16,000 jobs across 1,000 stores on the line.