UK to look into merger of Melrose, GKN

Friday, 30. March 2018 12:09

Greg Clark, British secretary of state for business, energy and industrial strategy, said Melrose Industries Plc's deal to take over GKN Inc. will undergo a statutory review to analyze "all evidence." Speaking to the BBC on Friday, he brushed off the opposition's criticism and the claim from his predecessor Michael Heseltine that other countries would block such a merger on defense concerns.

If funds bought GKN shares to swing the majority to favor the hostile bid, it means the stakeholders who sold them the equity have effectively opted to act against the board, according to the business secretary. The United Kingdom doesn't want to be "protectionist" and to "pick winners as was done in the past and subsidize them," he added.

Shareholders of the maker of the Spitfire fighter plane yesterday accepted the bid from the turnaround firm against the wishes of the management, which earlier struck another agreement with Dana Inc. from the United States. Before the decision was made, Melrose has sweetened its "final offer" and told the government it would keep the company's headquarters and listing in the UK and invest further. The ailing industrial giant, based in Redditch, has its largest facility in ​Filton near Bristol.

Related Links: GKN plcMelrose Industries PLCDana Incorporated
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Breaking the News / IT