Outgoing Safeway boss Carlos Criado-Perez gave a warm endorsement to Morrisons’ prospects of successfully integrating his company after the takeover.
Speaking after shareholders overwhelmingly backed the deal, Safeway’s chief executive Carlos Criado-Perez told The Grocer he was a firm believer Morrisons would successfully integrate the businesses.
“I have been involved in mergers in the past. Morrisons
will cope well. There will be difficulties - all integrations have difficulties. You must exercise a lot of wisdom and leadership to be successful. But Morrisons has these qualities.”
Shareholders representing more than 99% of Safeway’s shares approved the merger, which will be effected by a scheme of arrangement, at its EGM on Wednesday.
A similar proportion of Morrisons shareholders gave support at a Bradford meeting.
Executive chairman Sir Ken Morrison said he had very clear and detailed plans for Safeway and added he was confident of a swift and effective merger.
However, Safeway’s board of directors was criticised by many small Safeway shareholders concerned at the prospect of lower dividends from the new enlarged company. “The Safeway board has not acted in the best interest of shareholders,” said one, who received applause for his comments. “Everyone’s interests have been safeguarded except those of shareholders.”
Another described the meeting as a whitewash. “Our dividend will be about a third of what it has been. The Safeway board, Morrisons and the advisors will get rich. But the shareholders are the losers. Sir Alistair Grant would be turning in his grave.”
Safeway chairman David Webster tried to reassure shareholders and said the Safeway board had got the best possible deal for them. He told the meeting he would roll over his own and his family’s shares into Morrisons’ stock. “The regulatory environment has placed Safeway in a straitjacket,” he said. “If it wasn’t for regulatory controls, we would have got a better price for shareholders.”
Webster received some support from shareholders. “I’m certain the merger is right,” said one. “The share price will appreciate and compensate for any decrease in dividend.”
Others were critical of the Competition Commission, with one suggesting that it was high time that “somebody regulated the regulators”.
The only remaining barriers to the merger are two high court hearings to sanction the scheme on March 1 and 4. The merger will then become effective and dealings in the new Morrisons shares will start on March 8.
Sean McAllister
Speaking after shareholders overwhelmingly backed the deal, Safeway’s chief executive Carlos Criado-Perez told The Grocer he was a firm believer Morrisons would successfully integrate the businesses.
“I have been involved in mergers in the past. Morrisons
will cope well. There will be difficulties - all integrations have difficulties. You must exercise a lot of wisdom and leadership to be successful. But Morrisons has these qualities.”
Shareholders representing more than 99% of Safeway’s shares approved the merger, which will be effected by a scheme of arrangement, at its EGM on Wednesday.
A similar proportion of Morrisons shareholders gave support at a Bradford meeting.
Executive chairman Sir Ken Morrison said he had very clear and detailed plans for Safeway and added he was confident of a swift and effective merger.
However, Safeway’s board of directors was criticised by many small Safeway shareholders concerned at the prospect of lower dividends from the new enlarged company. “The Safeway board has not acted in the best interest of shareholders,” said one, who received applause for his comments. “Everyone’s interests have been safeguarded except those of shareholders.”
Another described the meeting as a whitewash. “Our dividend will be about a third of what it has been. The Safeway board, Morrisons and the advisors will get rich. But the shareholders are the losers. Sir Alistair Grant would be turning in his grave.”
Safeway chairman David Webster tried to reassure shareholders and said the Safeway board had got the best possible deal for them. He told the meeting he would roll over his own and his family’s shares into Morrisons’ stock. “The regulatory environment has placed Safeway in a straitjacket,” he said. “If it wasn’t for regulatory controls, we would have got a better price for shareholders.”
Webster received some support from shareholders. “I’m certain the merger is right,” said one. “The share price will appreciate and compensate for any decrease in dividend.”
Others were critical of the Competition Commission, with one suggesting that it was high time that “somebody regulated the regulators”.
The only remaining barriers to the merger are two high court hearings to sanction the scheme on March 1 and 4. The merger will then become effective and dealings in the new Morrisons shares will start on March 8.
Sean McAllister
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