...but Melrose backs City

MELROSE laid out official plans for the bumper £3.9bn float of GKN’s automotive arm in London.

The FTSE 100 turnaround specialist said Dowlais will join the stock market as ‘the UK’s premier listed automotive business’ next month. Melrose, which buys struggling industrial companies, improves them and sells them on, bought GKN for £8.1bn in 2018.

It is splitting off its automotive business, to be called Dowlais, a nod to the Welsh village that was home to one of GKN’s founders.

Dowlais, which has more than 24,000 staff, makes parts for electric and petrol and diesel cars. One in five cars in the UK has parts it makes. RBC Capital markets analysts valued the spin-off at £3.9bn.

Boss Liam Butterworth is in line to make up to £5.3m a year running the business. Melrose will hold on to a 3pc stake.