Morrisons owner CD&R struggling to sell Motor Fuel Group - report

Clayton Dubilier & Rice’s efforts to sell Motor Fuel Group are reportedly stalling.

Bloomberg cited people familiar with the matter as saying that the private equity firm has seen negotiations with potential buyers falter over the asking price and the availability of financing.

CD&R has been seeking a valuation of about £5bn, according to Bloomberg. The company is understood to be satisfied with the performance of MFG and is in no rush to sell the business.

It is prepared to wait, possibly until next year, for conditions to improve to ensure its price expectations are met, sources said, adding that deliberations are ongoing and a buyer could still emerge with a compelling offer.

US asset manager Fortress Investment was among a select group of suitors studying the business, according to Bloomberg.

In response to concerns raised by the UK’s Competition and Markets Authority, CD&R offered to sell Motor Fuel Group in order to complete its takeover of supermarket chain Morrisons.