Morrisons takes on EG Group in fight for McColl’s

Morrisons has mounted a last-ditch rescue bid for McColl’s, prompting petrol station operator EG Group to improve its offer. The supermarket chain, which is owned by US buyout group Clayton, Dubilier & Rice, tabled an improved offer just hours before a court was expected to formally appoint an administrator. McColl’s lenders had rejected Morrisons’ earlier proposal. EG, whose owners also control grocery chain Asda, has in turn offered to take on the funding of McColl’s pension scheme if its bid is successful. EG’s initial pre-pack proposal would have left the McColl’s pension scheme in the hands of the Pension Protection Fund, provoking almost immediate criticism. The offers on Sunday marked the final hours of a two-way battle over McColl’s, with people close to the process expecting Morrisons and EG to submit best and final bids before a decision is taken on Monday. McColl’s operates more than 1,200 convenience stores, including more than 200 outlets operating under the Morrisons Daily brand, and has debts of £145m. The Times (£) The FT (£)