Government wades into GKN bidding skirmish

Business Secretary Greg Clark has demanded “extensive and clear” commitments from turnaround specialist Melrose over its £8.1 billion bid for UK engineering giant GKN, raising concerns over short-term interests.

In an exchange of letters with Melrose chief executive Simon Peckham, Clark said GKN was a “valued employer” with government sponsored contracts, and that the firm would have to agree to a list of “binding” agreements if its bid was successful.

Melrose said it would make a five-year commitment to GKN, having agreed with the Takeover Panel to maintain its UK listing and HQ and ensure that a majority of its directors are resident in the UK.