The papers heavily feature the news that Morrisons has secured a rescue package for convenience chain McColl’s, beating off competition from EG Group.

Sky News broke the news yesterday that Morrisons had won the battle for McColl’s, writing: “Paradoxically, the result may have yielded a better outcome for McColl’s than a solvent sale to Morrisons, which said on Friday that it would preserve the “vast majority” of its stores and jobs.” (Sky News)

An acquisition by Morrisons was considered the less disruptive outcome because it has a wholesale agreement with the chain. (The Times £)

The McColl’s board is understood to have failed to submit the EG Group takeover for approval by judges before the courts closed on Friday. The failure to file documents on time appears to have played a pivotal role in re-opening the door for Morrisons. (The Telegraph)

As part of its winning offer, it is understood that Morrisons agreed to waive the money it was owed by McColl’s – thought to be as much as £150m – thereby allowing the administrators to distribute more money to other unsecured creditors. (The Guardian)

The sale is likely to protect many of the 16,000 jobs that were at risk in the event of McColl’s collapse. But Morrisons, which is owned by the private equity group Clayton, Dubilier & Rice, has made no assurances as to what would happen to underperforming McColl’s stores. (The Financial Times £)

McColl’s saga is lesson banks must take onboard with recession looming, writes Nils Pratley in The Guardian. “The sour taste left by this saga is that the banks put the business into administration, thereby creating extra risks. There was no need to do so. These situations are often messy and rushed, but this one did not have to be.” (The Guardian)

“This is undoubtedly a good outcome for McColl’s and its staff,” writes The BBC’s Emma Simpson. “Although unsecured small creditors will likely lose out, it’s hard to recall a deal of this kind where so many stakeholders will get everything they’re owed.” (The BBC)

Employees of failing corner shop group McColl’s have good reason to be thankful to private equity, write The Mail’s Alex Brummer. “It is fascinating that deep pockets and access to finance meant that the owners of Morrisons and Asda were the only trade buyers in the frame.” (The Daily Mail)

UK retail sales fell in April as shoppers tightened their belts in response to the cost of living crisis, according to new industry data (The Financial Times £). The UK’s soaring cost of living and last month’s record increase in household energy bills have slammed the brakes on consumer spending, retail sector figures show (The Guardian). The soaring cost of living has seen consumers “put the brakes” on their shopping habits, new figures show (Sky News).

Philip Morris International, the owner of Marlboro cigarettes, is in takeover talks with Swedish Match over a multibillion-dollar deal that would expand the tobacco group’s smoke-free business (The Times £). Philip Morris International is nearing a deal to acquire European rival Swedish Match for about $16bn including debt, as the tobacco group bets on the rapidly growing market for cigarette alternatives (The Financial Times £)

Iceland’s push to be plastic-free by the end of the year is likely to be derailed by the pandemic and the war in Ukraine. The frozen food supermarket’s progress on removing all plastic from the brand’s own packaging has been delayed while it grapples with a disrupted supply chain “in survival mode”. (The Times £)

A US baby formula shortage is leaving manufacturers scrambling and parents in desperation (The Guardian). Major US pharmacies have restricted sales of baby formula in response to a worsening shortage of the special milk (The BBC).

Tyson Foods may struggle to keep its sizzle, writes The FT’s Lex Colum. “The US meat producer has managed to stave off inflationary pressures and labour woes [and] delivered sales and profits that topped analysts’ expectations… Yet flexing its pricing muscle may well provide added ammunition for regulators. The meat industry has come under criticism as consumer price inflation soars.” (The Financial Times £)

Rising protectionism is exacerbating chaos in global food markets brought on by the war in Ukraine, with governments clamping down on exports of staples including grains, cooking oil and pulses. (The Financial Times £)

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