Melrose wins £8 billion takeover battle for GKN
Engineering giant GKN has lost its fight to retain independence after its shareholders accepted an £8 billion hostile takeover approach by turnaround specialist Melrose.
The investment company said it had the support of approximately 52.43 per cent of GKN investors.
The decision by investors to back Melrose follows a two-month battle for control of the FTSE 100 company, which makes parts for the aerospace and automotive industries.
GKN has a site in Telford where it employs 350 people as well as other factories in the Midlands with around 1,000 workers.
Melrose has repeatedly accused GKN bosses of mismanaging the company, while opponents to Melrose have branded the firm an asset-stripper that would carve up the business and prioritise short-term profits over long-term success.
Melrose chairman Christopher Miller said: "We are delighted and grateful to have received support from GKN shareholders for our plan to create a UK industrial powerhouse with a market capitalisation of over £10 billion and a tremendous future.
"We are looking forward to working with GKN's talented workforce and to delivering for customers and all stakeholders. Melrose has made commitments as to investment in R&D, skills and people and we are very excited about putting these into action.
"Let me assure you that GKN is entering into very good hands. We would like to thank our shareholders for their continued support of the Melrose strategy thus far.
"We are full of enthusiasm as we begin this next stage of the Melrose story and look forward to creating substantial value for our shareholders, old and new."
It is the largest hostile takeover launched in the UK for almost a decade, since Kraft swooped on Cadbury in 2009.
