Apollo Global Management has pulled out of its takeover talks to acquire Morrisons, but is in discussions to join the group leading the charge to buy the British supermarket chain.

In a statement published this morning, the private equity firm said: “Apollo confirms that it does not intend to make an offer for Morrisons other than as part of the Fortress Offer.”

Read more: Bidding war on the cards after Morrisons accepts £6.3bn takeover

“Apollo Global Management confirms that it is in the preliminary stages of discussions with Fortress Investment Group, LLC regarding the recommended offer for Morrisons by Oppidum Bidco Limited which may result in funds managed or advised by Apollo forming part of the investment group led by Fortress for the purposes of the Fortress Offer” the statement also said.

“Should these discussions lead to any transaction, Apollo would be fully supportive of Fortress’s stated intentions regarding Morrisons.”

Morrisons’ share price dropped 0.14 per cent after the news broke.

The private equity firm moved to temper expectations that it will be joining the consortium led by Fortress in the statement.

The move is the latest development in a string of takeover approaches for the the UK’s fourth largest supermarket.

Earlier this month, Morrisons accepted a £6.3bn takeover bid from a group of funds led by affiliates of SoftBank-backed Fortress.

Morrisons shareholders will receive 254p a share under the agreement, comprising 252p in cash and a 2p cash dividend. The bid was accepted on 18 June.

Rival private equity firms were reportedly considering submitting competing bids for the company after the news broke.

Clayton, Dubilier & Rice offered 230p-a-share for the supermarket before the Fortress-led offer was accepted.

Read more: Morrisons accepts £6.3bn takeover bid from SoftBank-backed Fortress