Pressure rises over GKN deal
Pressure is increasing on ministers to intervene to stop the controversial takeover of GKN by Melrose.
Politicians from all parties have called for the deal to be blocked in order to protect sensitive British military interests as well as thousands of jobs.
Around 400 workers are currently employed in GKN's wheels and structures plant in Telford. Another 1,000 work at factories across the West Midlands, many involved in the company's aerospace arm.
The Defence Secretary, South Staffordshire MP Gavin Williamson, is believed to be concerned about the deal. He told MPs before it went through that he had a “whole series of questions” and added: “While there is no clarity and no assurance, do I have concerns? Yes, I do.”
It is now understood that Melrose, a British firm specialising in making firms more profitable before selling them on, is to provide a legally binding undertaking that requires it to hold on to GKN’s cherished aerospace arm for a minimum of five years.
The assurance would go much further than previous pledges to give the Government a veto on any sale. But it would not provide any guarantees to the workers at Telford's Hadley plant.
If Melrose gets the green light, advisers to the two companies will share a fee jackpot of approximately £250 million.
Politicians have criticised the deal being allowed to go through on a company that carries out military work for both the British armed forces and for the UK's allies across the world.
