One of Britain’s most respected engineering firms has been sold to a Swiss rival in a £4.1 billion deal, fuelling fears that more UK companies are becoming takeover targets as foreign buyers circle the London market.
Bath-based Rotork has agreed to be bought by Swiss industrial giant ABB in the latest blow to the UK’s battered stock exchange.
ABB will pay 506p per share for Rotork, which specialises in manufacturing precision flow control equipment used in industries including oil, gas, water and energy.
The takeover marks another major foreign acquisition of a British-listed business and comes amid growing concerns that London is losing some of its most valuable companies to overseas buyers.
The deal follows a string of high-profile takeovers involving UK firms, including airline easyJet, testing group Intertek Group, food ingredients giant Tate & Lyle and gambling operator Evoke.
Critics have warned the steady stream of deals highlights the declining appeal of the London market, where companies have struggled with lower valuations compared with rivals in the US and Europe.
ABB chief executive Morten Wierod said the Swiss group had admired Rotork for years and believed the acquisition would strengthen its automation business.
“ABB has followed Rotork over many years, and we admire the execution excellence, engineering quality and customer trust that Rotork’s teams deliver each day,” he said.
“We are convinced of the compelling strategic fit of the transaction that will expand our automation offering.”
ABB said Rotork would continue operating as a separate division within the wider group, easing concerns over a complete integration of the business.
However, the Swiss firm warned that some job reductions could take place in overlapping back-office functions, including administrative and support roles.
It said any cuts were expected to be limited and added: “ABB does not intend to make any other headcount reductions that would be material.”
Rotork chairwoman Dorothy Thompson said the combination would unite two companies with shared ambitions in automation and electrification.
“The combination brings together two companies whose purposes are closely aligned, with a shared focus on automation and electrification to enable more sustainable and efficient operations,” she said.
The takeover still requires shareholder approval and regulatory clearance, but is expected to proceed after both boards backed the agreement.
For Britain’s manufacturing sector, the deal represents another landmark moment as globally important engineering brands increasingly become targets for overseas buyers.
The question now facing investors and policymakers is whether Rotork is the latest isolated acquisition — or another sign that the UK is becoming a hunting ground for foreign takeover giants.
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