Mayor calls for GKN takeover bid review
West Midlands mayor Andy Street is the latest figure to add his voice to concerns over Melrose's proposed takeover of engineering giant GKN.
Mr Street has written a letter to secretary of state for business Greg Clark, calling him to review the takeover bid.
In his letter, Mr Street talks about the importance of GKN - which has a site in Telford - to the region.
Melrose's £7.4 billion bid is currently under scrutiny and there are fears that a successful takeover could lead to job cuts and the shifting of parts of the business overseas.
Melrose specialise in operationally improving industrial companies, before selling them on for a profit.
Mr Street said: "As you will know, GKN is a company of huge importance to the West Midlands. It has a long history in the West Midlands, and has built our traditional strengths in engineering and manufacturing.
"GKN is a significant employer in the West Midlands, with over 1,000 workers at sites in Erdington, Kings Norton, Minworth and at the company's headquarters in Redditch. It also forms a vital part of the automotive and aerospace supply chains for other West Midlands and UK firms. GKN is a long-term manufacturing success story in the region.
"The takeover bid by Melrose Industries has brought about legitimate concerns about jobs, pensions, skills, national security and research and innovation at GKN.
Importance
"I understand that the directors of GKN have proposed an ambitious transformation programme in response to the bid, and that GKN's workers and unions are committed to working with them to drive improved business performance.
"Given the importance of GKN and of these takeover concerns, I call on you and your department to review the bid by Melrose Industries, and determine if Government should halt the takeover."
In the letter, Mr Street urges Mr Clark to ensure that the outcome of any review will protect GKN workers' jobs in the West Midlands and across the UK, protect the pensions of members of GKN's pension scheme, and ensure national security is not compromised by any threat to GKN's defence programmes.
"Given our shared belief in the importance of Local Industrial Strategy to the West Midlands, I hope that you will take every measure necessary to secure the future of this great West Midlands-based business," Mr Street added.
Since learning of the proposed takeover, Ms Allan has sought assurances from the Government on jobs and operations, as well as the pensions of GKN staff both at Telford's Hadley Park and at other UK sites.
She has also made representations, directly, to Mr Clark during a face-to-face meeting in Parliament and to the Work and Pensions Secretary Esther McVey during Parliamentary questions.
