Melrose Industries to sell Nortek air conditioning unit for £2.62bn Melrose Industries to sell Nortek air conditioning unit for £2.62bn Melrose Industries said on Monday it has agreed to sell its Nortek Air Management business for £2.62bn and will distribute a portion of the funds to shareholders. The British engineering firm said it plans to use part of the proceeds, which will come from Chicago-based buyer Madison Industries, to cut debt. It added that the [...]
Melrose shares get a boost despite GKN job cuts and car industry warning Melrose shares jump as GKN turnaround moves up a gear Takeover specialist Melrose Industries this morning predicted the downturn in the global automotive industry will persist until at least the end of the year, but enjoyed a jump in shares as it allayed investor concerns about the effect the industry’s struggles were having on its own business. Melrose’s market value rose five per cent this [...]
GKN slashes 1,000 jobs as owner Melrose moves turnaround plan up a gear GKN cuts 1,000 jobs amid turnaround plan GKN Aerospace, one of Britain’s oldest industrial manufacturing companies, has announced plans to cut 1,000 white collar jobs, in a bid to make it a “coherent business”. The firm was bought by Melrose last year for £8.1bn after an ill-tempered takeover scrap, with the buyer promising to boost profits at the former blue-chip firm. Read [...]
Melrose chief executive defends plans to close GKN factory near Birmingham April 11, 2019 The buyer of engineering group GKN has defended its plans to close one of the firm’s factories after MPs complained they undermine commitments made during the takeover process. Melrose chief executive Simon Peckham wrote to Rachel Reeves, who chairs the Business, Energy and Industrial Strategy Select Committee, saying his firm had “complied with both the [...]
Losing height: Boeing suppliers’ shares take a hit after plane maker announces 737 Max production April 8, 2019 Some of Britain’s biggest engineering companies lost hundreds of millions in market value this morning after Boeing announced it will cut production of its 737 Max range by nearly 20 per cent. Suppliers to the US firm including Rolls-Royce lost out as investors digested the news announced on Friday afternoon, which is the latest blow [...]
Melrose moves into red after GKN takeover, but shareholders remain undeterred March 7, 2019 Acquisition specialist Melrose Industries fell into the red in 2018 after the £8bn takeover of aerospace parts group GKN, but shares rose five per cent on Thursday morning investors were buoyed by strong underlying profits. The FTSE 100 firm, which specialises in buying and improving underperforming businesses, said the hostile takeover of GKN had helped [...]
UK bags Europe’s M&A top spot with $247bn of deals in 2018 as TMT mergers grow February 19, 2019 The UK enjoyed the highest value of M&A deals in Europe last year as telecoms and media takeovers spiked. High value purchases like Comcast’s $39bn purchase of Sky pushed mergers involving UK companies to $247bn in 2018, data compiled by law firm Clifford Chance found. Read more: Watchdog delays final report on Sainsbury's-Asda merger Both domestic and [...]
Activist shareholders step up pressure on UK boards January 13, 2019 Shareholder activism increased sharply in the UK last year as investors launched campaigns at 25 companies, spending $7.35bn (£5.72bn) on shares. Elliott Advisors was the most prolific activist investor, launching 22 new campaigns worldwide, according to research by the investment bank Lazard. Elliott led a campaign that prompted UK retailer Whitbread to offload Costa Coffee to Coca-Cola [...]
Mark Kleinman’s big predictions for the Square Mile in 2019 January 11, 2019 Sir Martin Sorrell’s WPP exit, Unilever’s HQ U-turn, Melrose’s swoop for GKN: 2018 was a year full of surprises in the City. And while forecasting might be a fool’s errand, here are 10 predictions for the year ahead. •Theresa May will decisively lose next week’s “meaningful vote” on Brexit: that’s not a punt that will [...]
Melrose share price tumbles following low-ball bids for GKN unit November 26, 2018 Turnaround specialist Melrose led FTSE fallers today as its share price fell over six per cent following reports of disappointing bids for one of its GKN units. Melrose, which bought aerospace company GKN in an £8bn hostile takeover earlier this year, was reportedly forced to reconsider its options after it was low-balled by bids for [...]