MORRISONS will pay its taxes in the UK despite the incoming private equity owners using a Cayman Islands firm to operate the business, according to retail giant Sir Terry Leahy.
MPs had questioned the arrangement behind the successful Clayton, Dubilier & Rice (CD&R) takeover of the supermarket, sealed in an auction recently, which will see an entity called Market21 GP Holdings operate the business.
But Leahy, the former Tesco boss who advised CD&R on the takeover and is widely expected to take up the role of Morrisons chairman, wrote to Kevin Hollinrake MP earlier this week to assuage any concerns.
“It will remain a British business, registed and headquartered in the UK, and CD&R ownership will not change that position,” he wrote.
Hollinrake said he welcomed the confirmation in a post on twitter.
The takeover is expected to be confirmed at a shareholder meeting next week.
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