The battle for control of a supermarket chain with a branch in Oswestry has taken a new twist after an improved bid of £7bn was accepted.

Last night(August 19) Morrisons accepted an improved 285p per share bid from US based private equity firm Clayton, Dubilier & Rice, having previously rejected a much lower bid at 230p per share from CD&R in June.

In light of the improved offer from CD&R, Morrisons Directors have decided unanimously to withdraw their previous recommendation to accept an earlier offer from rival bidder Fortress worth around £6.7bn.

Fortress are said to be "considering their options" following the improved offer from their rival bidders, and may yet return to the table with a counter-bid.

In a move to address concerns around store closures, the CD&R bid document moved to reassure shareholders that it did not plan to sell off the company's large portfolio of branches, referencing their previous experience with petrol company MFG which it says are "90% freehold and which has not changed under CD&R's six year ownership."

Commenting on the CD&R Offer, Andrew Higginson, Chair of Morrisons, said: "The Morrisons Board believes that the offer from CD&R represents good value for shareholders while at the same time protecting the fundamental character of Morrisons for all stakeholders.

"CD&R have a strong record of developing, strengthening and growing the businesses that they invest in and they share our vision for Morrisons' future. This, together with the strong set of intentions that they have set out today, gives the Morrisons Board confidence that CD&R will be a responsible, thoughtful and careful owner of an important British grocery business."

The CD&R bid team have been advised by former Tesco chief executive Sir Terry Leahy, who added:

"CD&R is delighted to have the opportunity to support the management of Morrisons in executing their strategy to grow and develop the business. The grocery sector in the UK is undergoing great change and we believe Morrisons is well placed, with CD&R's support, to succeed in this environment.

"CD&R values Morrisons' distinctive business model and is committed to supporting it, including the successful ESG and broader stakeholder engagement strategies of the company that are essential to its continued success."

Morrisons Shareholders will now be asked to approve the CD&R Offer at a meeting expected to take place in the week commencing October 4.