Melrose vows to keep GKN in UK, invest further

Tuesday, 27. March 2018 09:31

Turnaround firm Melrose Industries Plc's chief executive Simon Peckham attempted to assure the British government on Tuesday that its hostile merger offer for GKN Inc. would, if successful, also bring about investment in research and development of at least 2.2% of sales, the current level. In the five-year plan it set out it promised not to sell the aerospace business until April 2023. Melrose vowed to ensure the division will retain the rights to the GKN name just as the driveline unit.

The statement was issued after Greg Clark, United Kingdom's secretary of state for business, energy and industrial strategy, voiced concern over the future deliveries and services to the country's armed forces, among other issues. He has asked for a commitment to continue spending on strategic programs and training.

Melrose replied it would maintain the stock market listing and headquarters in London and warned the agreed deal with Dana Inc. for the automotive division is against the interests of workers, pensioners, partners, shareholders and the economy. "In fact, I would go further – it places them at risk," Peckham added.

Related Links: Dana IncorporatedGKN plcMelrose Industries PLC
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