Takeover of Shrewsbury engineering firm Doncasters is halted
A £1 billion takeover deal for engineering giant Doncasters has been halted over security concerns, according to reports.
The group, which employs more than 230 people at the Sentinel Works in Whitchurch Road in Shrewsbury, had been lined up for a sale to Beijing Xinwei, a Chinese telecoms technology provider.
But current owner Dubai International Capital has now abandoned the deal after months of talks after indications from the USA that it would not approve the deal on security grounds.
Doncaster's defence business makes missile fins and components for weapons launch systems, and while it represents less than five per cent of the company's overall revenues separating the division from its overall engineering business was said to be a hugely difficult process.
A memo to staff said the sale process had been terminated but did not name Xinwei as the prospective buyer, nor the reasons for calling off the talks.
"The DIC Board has voted unanimously to retain full ownership of Doncasters and has closed any ongoing discussions with potential buyers," it said.
"While considering a sale of Doncasters, DIC has discussed the company's progress and potential with its financial partners who agree that the business is in a healthy position with significant growth potential."
The company is based in Burton upon Trent, and employs 5,000 people across its divisions.
The Shrewsbury operation is focused on making vanes and blades for the aerospace and industrial gas turbines industries.
