Home Business NewsBusiness Melrose rules out reorganisation of GKN if bid succeeds

Melrose rules out reorganisation of GKN if bid succeeds

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28th Mar 18 9:01 am

Latest in takeover bid

Melrose said today that it has reached an agreement with the UK’s takeover panel in relation to its legally binding post-offer undertakings for the British engineering firm GKN and would not immediately seek a reorganisation of the business.

This development comes hours after Business secretary Greg Clark had written to the turnaround specialist to demand a long-term investment approach to the turnaround specialist’s £8.1bn takeover plan.

Melrose said that throughout the five-year undertaking period it would keep the headquarters of the combined group in Britain and the business will continue trading on the London Stock Exchange’s main market.

It also ruled out a reorganisation of the Melrose Group.

Melrose said on March 27 that it would keep the aerospace division of GKN for at least five years and would increase spending on apprentices and research and development by making an innovation centre near Oxford a global centre of excellence.

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