Melrose buys out GKN for £8.1bn after long-running takeover bid
INVESTMENT firm Melrose has succeeded in its hostile bid to take over GKN for £8.1bn after securing the backing of the engineering giant’s shareholders.
A total of 52.43% investor votes were cast in favour of the deal going ahead, above the 50% plus one share threshold.
Melrose chairman Christopher Miller said they were “delighted and grateful” to have received support from GKN shareholders for their plan to create a “UK industrial powerhouse”.
“We are looking forward to working with GKN’s talented workforce and to delivering for customers and all stakeholders,” he said.
“Melrose has made commitments as to investment in R&D, skills and people and we are very excited about putting these into action. Let me assure you that GKN is entering into very good hands.”
The victory brings to a close a bitter battle that has raged since January, although there are likely to be renewed calls for Business Secretary Greg Clark to intervene in the deal. He has already called for “binding” agreements over Melrose’s proposals for GKN.
Melrose has stressed its commitment to improving “not only GKN, but the UK economy”, committing to keeping the firm listed in London and headquartered in the UK as part of a five-year pledge.
Shares in GKN rose 7% following the news on Wednesday afternoon.
But Melrose’s takeover will spark fears for jobs after Airbus, GKN’s largest customer, earlier warned it could not give any new business to the firm if the deal with the turnaround specialist went ahead.