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Morrisons reaches agreement over pension schemes with bidder CD&R

CD&R will provide covenant support for the ‘buy out’ of the schemes with an insurance company

Wm Morrison Supermarkets PLC (LSE:MRW) and its bidder Clayton, Dubilier & Rice have reached an agreement in principle over the pension schemes.

If the takeover goes ahead, CD&R said it will provide covenant support for the ‘buy out’ of the schemes with an insurance company.

READ: Morrisons bidding war overshadows 'disappointing' interims

The pension trustees said they currently do not have enough funds to do so, but were planning to complete the buyout in less than ten years.

The CD&R package includes “additional security” in the form of “further properties with an appropriate release mechanism to allow for a gradual release”, the trustees said.

Shares were flat at 291.7p early on Tuesday.

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