LONDON, June 21 — The UK supermarket chain Morrisons has rejected a £5.5 billion (RM31.4 billion) takeover offer from a US private equity group.

Morrisons said in a statement on Saturday evening that it rejected a conditional cash offer from US private equity group Clayton, Dubilier & Rice (CD&R) of 230 pence per share, or just over £5.5 billion.

The offer "significantly undervalued Morrisons and its future prospects”, the statement said.

"Accordingly, the board rejected the conditional proposal on 17 June 2021.”

CD&R, which has until July 17 to announce a firm intention to make an offer under UK takeover rules, said in a statement that there can be "no certainty an offer will be made”.

Morrisons reported last month that first quarter like-for-like sales were up 2.7 per cent, excluding fuel. Online sales grew 113 per cent year-on-year.

It said however that it incurred £27 million in Covid-related costs during the first quarter. — AFP