Morrisons rescue deal for McColl’s totalled £182m

Grocer Morrisons coughed up some £182m to snap up beleaguered convenience store operator McColl’s, defeating a rival bid from Asda owners the Issa brothers.

The newsagent chain’s equity value was worth around £3m earlier this month while senior creditors were owed some £160m, documents from administrators PwC revealed.

While the Issa’s EG Group had offered “materially” more cash than private equity owned Morrisons, the grocer won out after it pledged more cash for unsecured creditors. Morrisons also clinched the deal due to its position as McColl’s main supplier. 

Four credible bidders had been eyeing a takeover of the debt-laden firm in its last few months before calling in administrators.

However, the number of bidders had slimmed to three by the time McColl’s shares were suspended on 6 May, narrowing further to just Morrisons and forecourt operator EG Group.