Frasers Group, a major player in the retail industry, has recently announced that it will be holding off on making a bid for luxury leathergoods brand Mulberry. This surprising decision has had a significant impact on Mulberry’s stock price, causing it to plummet by over 11% and erasing more than £15 million in market value.
Despite holding a considerable 37% stake in Mulberry, which would typically trigger a mandatory takeover bid, Frasers Group has decided against pursuing full ownership at this time. This is in part due to the fact that Mulberry’s majority shareholder, a company linked to the Ong family in Singapore, controls a larger 56% stake.
Speculation is rife as to why Frasers Group has chosen not to make a bid for Mulberry. Some believe that the company is instead focusing its efforts on potentially acquiring struggling retail giants Debenhams and/or Arcadia. Talks of acquiring a portion of Debenhams have been ongoing, though no official offer has been confirmed amidst the brand’s liquidation process. Meanwhile, bids for Arcadia, or its individual brands, are due by a deadline set for December 18th.
With these other major opportunities on the horizon, it appears that Mulberry may have taken a back seat in Frasers Group’s strategic acquisition plans, at least for the time being. It remains to be seen whether the company will circle back to Mulberry in the future or continue to pursue other high-profile targets in the retail sector.
For more information on this developing story, you can visit the official Frasers Group website here, or follow updates on Mulberry’s stock performance on the London Stock Exchange official site here.
