Morrisons shareholders have formally approved a £7bn takeover by US private equity firm Clayton, Dubilier & Rice (CD&R) after a bidding war.

CD&R, whose interest in acquiring Britain’s fourth-biggest supermarket chain was first revealed by Sky News, won an auction against rival Fortress Investment Group – which is backed by Japan’s Softbank – earlier this month.

Morrisons said 99.2% of the investor vote held on Tuesday was in favour of the deal, and the takeover is expected to complete on 27 October.

The winning bid was spearheaded by former Tesco boss Sir Terry Leahy, who said after it was approved: “We are very pleased to have received the approval of shareholders and are excited at the opportunity that lies ahead.

“The particular heritage, culture and operating model of Morrisons are key features of the company and we will be very mindful of these during our tenure as owners.”

Morrisons chairman Andrew Higginson said: “We remain confident that CD&R will be a responsible, thoughtful and careful owner of Morrisons.”

The Bradford-based group had a market value of £4.3bn back in June, just before the bidding war began.

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Morrisons spurned CD&R’s initial £5.5bn offer, later agreeing to a £6.3bn approach from Fortress.

Ultimately, the tussle for the Bradford-based company – which employs 110,000 people – was settled in a City auction process in which CD&R bid 287p a share, a penny more than its rival, valuing Morrisons at £7bn.

The deal will end the supermarket’s 54-year run as a publicly-listed company.

Morrisons started out as an egg and butter merchant in 1899.

CD&R has committed to retaining its Bradford base and its existing management team, led by chief executive David Potts.

It has also said it will not sell its freehold store estate and maintain staff pay rates, though the commitments are not legally binding.

Morrisons is the second UK supermarket chain to be taken private in a year after Asda was bought by petrol station entrepreneurs the Issa brothers and TDR Capital, in a £6.8bn deal which completed in February.

Mr Potts – who has orchestrated a turnaround in the Morrisons’ fortune during his time in charge – will make more than £10m from selling his Morrisons shares to CD&R, while finance director Trevor Strain will pocket around £4m.

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