Sumary of Business secretary Kwasi Kwarteng backs £6.3bn takeover of Morrisons:
- In a radio interview, the Business Secretary described the deal as ‘a really good prospect’ for the supermarket and suggested it was an example of foreign investment that would create jobs.
- But critics warned the comments showed ‘a lack of understanding’ about the predatory buyout industry, which is known for asset-stripping businesses and culling staff to make quick profits.
- Advisers to pocket £300m windfall Bankers, lawyers and advisers stand to rake in more than £300million in fees from the sale of Morrisons, documents revealed yesterday.
- But yesterday the Business Secretary appeared to back the sale, telling the LBC radio station: ‘Yeah, it [private equity] sounds scary.
- But I have always campaigned for a Britain that is open for foreign investment.
- ‘Morrisons chairman Andy Higginson talked to me about the deal and I said that this is a vote of confidence in the UK.’It is not a bad thing if foreigners want to come and buy really good assets in your country.
- ‘It means you are attracting capital, you are attracting investment, and that creates jobs.
- ‘However, veteran City investment manager Justin Urquhart Stewart warned the private equity firms were ‘not at all long-term investors’.