GKN takeover deal: This is what Melrose has promised in latest bid

Shareholders have until 1200 GMT on Thursday to accept the bid

In the last-ditch effort to win government backing for its £8bn takeover bid for engineering giant GKN, Melrose has now pledged to own the Aerospace division of GKN for at least five years and to increase funding in apprenticeships and R&D.

Shareholders have until 1200 GMT on Thursday to accept the hostile bid from the turnaround specialist.

Yesterday, Business Secretary Greg Clark had written to the group saying: “I want to be clear that the government is committed to an open economy and to the belief that in most regards markets and shareholders should decide the outcome of takeover bids.

“Where, however, there are broader interests at play and in particular where public investment is directly or indirectly at stake I do expect potential acquirers to reflect these in their approach and the commitments they are prepared to make.”

Melrose’s chief executive Simon Peckham has now reassured Clark that the group will keep its headquarters in the UK and maintain its listing on the LSE. The group will also:

• Ensure a majority of its directors are resident in the UK
• Ensure that the aerospace and driveline divisions retain the rights to the GKN name
• Will at least maintain GKN’s level of research and development investment which is 2.2% of sales for the financial years from 2019 to 2023