LONDON (Reuters) – UK supermarket Morrisons is set to enter the FTSE 100 index, the benchmark for UK blue chips, after its share price has jumped more than 60% since receiving an offer from the company Clayton, Dubilier & Rice (CD&R) private equity fund in June.
Index manager FTSE Russell placed Morrisons on its list of “indicative additions to the FTSE 100” on August 24 and said it would make a final announcement on Wednesday September 1 based on data collected at the close of 31. August.
Morrisons, in the midst of a $ 9.5 billion bidding war between US-based CD&R and a consortium led by SoftBank-owned Fortress Investment Group, is now valued at around £ 7 billion (9, $ 6 billion).
Its membership in the index may prove short-lived, with bidders ready to privatize the supermarket chain.
Currently a member of the midcap FTSE 250 index, Morrisons market cap now eclipses several members of the FTSE 100, such as UK broadcaster ITV and engineering specialist Weir Group, valued at 4.6 and 4, respectively. , 3 billion pounds.
Both companies are expected to be excluded from the blue chip FTSE 100 index along with Just Eat Takeaway.com.
The “nationality of the food delivery has been reassigned from the UK to the Netherlands, rendering the company ineligible for the FTSE UK Index Series,” index manager FTSE Russell said in a statement.
Dechra Pharmaceuticals and British engineering group Meggitt, which is at the center of a takeover battle, are both expected to enter the FTSE 100 index, FTSE Russell said.
(Reporting by Julien Ponthus; Editing by Tomasz Janowski)