DJ Morrisons Takeover Seen as Having Limited Impact on Tesco Bonds -- Market Talk
0839 GMT - The potential takeover of Wm. Morrison by a private equity firm is unlikely to have an immediate impact on the corporate bonds of the U.K.'s largest supermarket chain, Tesco, ING says. Morrisons, the country's fourth-largest grocer, has agreed to a takeover offer of 285 pence a share from Clayton Dubilier & Rice. "Part of the plan with Wm. Morrison is to invest in online and wholesale growth, which could increase competition for Tesco," ING's Alyssa Gammoudy says. However, she says Tesco is "well positioned to offer resilience as they benefit from the 'first mover' advantage and are the leading grocer in the U.K." She doesn't expect an immediate impact on Tesco's credit curve. (lorena.ruibal@wsj.com)
(END) Dow Jones Newswires
August 20, 2021 04:39 ET (08:39 GMT)
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