A PYMNTS Company

Canada/US: Hostile takeover move for GKN gets double boost

By  |  February 26, 2018

Turnaround specialist Melrose locked in a hostile takeover of British engineering firm GKN, said on Monday, February 26,  it had received clearance from competition regulators in the United States and Canada for the £7.4 billion (US$10.4 billion) deal.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The move comes after GKN wrote to investors earlier this month to warn over the “entirely opportunistic” takeover bid, saying its inexperienced management team and short-term business model are “inappropriate” for the business.

    The group also outlined a new strategic plan, which will see GKN sell off parts of its business to fund a £2.5 billion payout to investors. Melrose has swooped on GKN after profit warnings in October and November following problems at its US aerospace division sent shares tumbling.

    GKN, which employs around 58,200 staff and makes wing tips for Airbus, also ditched its incoming boss in November less than two months before he was due to take the top job as it warned over another hit in its troubled US plant.

    Full Content: Daily Mail

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.