Latest news with #GKN
Daily Mail
16-05-2025
- Automotive
- Daily Mail
Detroit buyer of Dowlais eyes secondary City listing after takeover
The US automotive supplier buying Dowlais Group is planning a secondary listing of its shares in London after the deal goes ahead. American Axle & Manufacturing agreed to acquire the car parts producer in a $1.4billion (£1.2billion) deal announced in January, just two years after Melrose Industries spun Dowlais out of its GKN Automotive division. American Axle said at the time it would seek to cancel the trading of Dowlais shares in London and list the enlarged firm on the New York Stock Exchange. However, the Michigan-based business now wants a secondary listing of its shares in the UK capital as part of the acquisition. It said this would 'ensure a greater range of both existing and prospective shareholders are able to access the future value creation opportunity of the combination'. American Axle's pursuit of Dowlais follows choppy electric vehicle demand and increasing competition from Chinese automakers, which benefit from generous public subsidies and large domestic demand. The enlarged group will benefit from greater scale and diversification, and create the financial strength to boost investment in new products and technologies. Following the deal, the merged group will have 50,000 staff members, with around 1,250 staff at risk of redundancy. Among the jobs threatened with the axe are duplicate head office, administrative and senior management positions, as well as research and development jobs in the US and Europe. Dowlais' London office in Victoria will also shut down, while its chief executive, Liam Butterworth, will stand down after gaining a £928,500 payment. In a statement on Friday, American Axle said both firms 'continue to believe that the strategic rationale for the combination remains compelling'. It added that the transaction 'will create a stronger business that is resilient across customers, geographies and products, resulting in the combined group being better positioned to navigate and succeed in an increasingly dynamic automotive industry and macroeconomic environment',. Dowlais Group shares were 0.8 per cent higher at 67.8p on Friday morning.
Yahoo
06-03-2025
- Business
- Yahoo
Britain can shake off US and become a drone superpower, says defence boss
Military drones offer the quickest route for Europe to rebuild its arms industry and reduce reliance on US weaponry, according to the boss of a key UK defence supplier. Peter Dilnot, the chief executive of GKN Aerospace parent Melrose Industries, said governments should prioritise investment in unmanned aircraft, because they take much less time to develop compared with traditional military equipment such as fighter planes. Mr Dilnot said European authorities were already stepping up drone programmes, which have played a central role in the Ukraine conflict. He said: 'Quite a lot of the development is uncrewed aircraft and cycles for those are a bit faster. If you don't strap someone to something you can speed up the development cycle. Because of what's happened, quite a lot of that is going on underneath the hood.' Mr Dilnot said Donald Trump's recent stance on Ukraine had given the European defence sector a new impetus, as he said that companies such as GKN 'will step up' production. GKN is a supplier for military programmes such as the General Atomics MQ-9 Reaper hunter-killer drone, for which it produces composite tail sections and lightweight landing gear. Mr Dilnot said: 'I wouldn't describe it as a war footing, but there is an urgency around this. It will take time.' Time will also be needed for Europe to reduce its reliance on American hardware, he added, particularly given that the vast majority of the West's defence spending is on US equipment. He said: 'Much of European defence spending on procurement is actually on US platforms. You can't change that overnight.' US programmes are the cornerstone of Melrose's defence business, led by the Lockheed Martin F-35 fighter, whose European customers include the UK, Germany and Italy. It also works on the Boeing Apache attack helicopter used by the British Army. Meanwhile, despite increased tensions between Europe and Mr Trump, Mr Dilnot said he saw little danger of the US pulling the plug on defence exports. He said: 'Unless there's a major breakdown between Europe and the US that goes beyond the tariff element, then it would be an act of self-harm for them. 'It's the inverse of everything that Mr Trump is driving towards. What they want is for other countries to be spending more on their kit.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
06-03-2025
- Business
- Telegraph
Britain can shake off US and become a drone superpower, says defence boss
Military drones offer the quickest route for Europe to rebuild its arms industry and reduce reliance on US weaponry, according to the boss of a key UK defence supplier. Peter Dilnot, the chief executive of GKN Aerospace parent Melrose Industries, said governments should prioritise investment in unmanned aircraft, because they take much less time to develop compared with traditional military equipment such as fighter planes. Mr Dilnot said European authorities were already stepping up drone programmes, which have played a central role in the Ukraine conflict. He said: 'Quite a lot of the development is uncrewed aircraft and cycles for those are a bit faster. If you don't strap someone to something you can speed up the development cycle. Because of what's happened, quite a lot of that is going on underneath the hood.' Mr Dilnot said Donald Trump's recent stance on Ukraine had given the European defence sector a new impetus, as he said that companies such as GKN 'will step up' production. GKN is a supplier for military programmes such as the General Atomics MQ-9 Reaper hunter-killer drone, for which it produces composite tail sections and lightweight landing gear. Mr Dilnot said: 'I wouldn't describe it as a war footing, but there is an urgency around this. It will take time.' Time will also be needed for Europe to reduce its reliance on American hardware, he added, particularly given that the vast majority of the West's defence spending is on US equipment. He said: 'Much of European defence spending on procurement is actually on US platforms. You can't change that overnight.' US programmes are the cornerstone of Melrose's defence business, led by the Lockheed Martin F-35 fighter, whose European customers include the UK, Germany and Italy. It also works on the Boeing Apache attack helicopter used by the British Army. Meanwhile, despite increased tensions between Europe and Mr Trump, Mr Dilnot said he saw little danger of the US pulling the plug on defence exports. He said: 'Unless there's a major breakdown between Europe and the US that goes beyond the tariff element, then it would be an act of self-harm for them. 'It's the inverse of everything that Mr Trump is driving towards. What they want is for other countries to be spending more on their kit.'
Yahoo
31-01-2025
- Automotive
- Yahoo
American Axle to buy GKN automotive owner Dowlais in $1.4 billion deal
By Yadarisa Shabong (Reuters) - Detroit-based American Axle and Manufacturing will buy GKN Automotive owner Dowlais in a cash-and-stock deal, valuing the London-listed firm at about 1.16 billion pounds ($1.44 billion), the companies said on Wednesday. Dowlais shares jumped as much as 13%, but had pared gains to trade up 4.6% at 71.5 pence by 1418 GMT. RBC analysts said the offer "somewhat undervalues what is an attractive Tier 1 auto asset during the ongoing wider auto slump". American Axle shares fell 2.8% to $5.66. The deal values Dowlais, maker of driveline systems and other automotive parts, at 85.2 pence per share, a premium of nearly 25% to the stock's close on Tuesday. The combined group aims to benefit from greater scale as the auto industry grapples with volatile demand for electric vehicles, economic uncertainties and the global expansion of Chinese EV makers. "I think consolidation in the industry is definitely required and we want to be a first mover in consolidation in the driveline space," Dowlais CEO Liam Butterworth told Reuters. Butterworth said consolidating was necessary as suppliers need a broader portfolio to cater to the varied needs of customers at a time when major players China, the United States and the European Union are taking very different approaches to the EV transition. Dowlais, which operates in more than 20 countries, is set to join a growing list of takeovers as foreign companies take advantage of UK firms' relatively cheap valuations. GKN, a mainstay of British engineering, has changed hands multiple times since 2018, when it succumbed to an 8 billion pound hostile bid from Melrose. In 2023, Melrose spun off GKN's automotive and powder metallurgy businesses by listing Dowlais - named after the village in South Wales where GKN was founded. Its London-listed shares have lost more than 40% of their value since the spin-off. Over the past year, Dowlais has seen revenues fall, with its ePowertrain business hit by a subdued EV market. The two companies offer a range of automotive parts supporting internal combustion engines, hybrid and electric powertrains. AAM expects synergies of $300 million by the end of the third year after the deal closes. Shareholders of the U.S.-based company are expected to hold 51% of the combined entity, with Dowlais shareholders owning approximately 49%. The deal is expected to close this year subject to shareholder and regulatory approvals including from the European Union, United States, and China, where Dowlais operates a joint venture. Sign in to access your portfolio
Yahoo
29-01-2025
- Automotive
- Yahoo
American Axle to buy GKN automotive owner Dowlais in $1.4 billion deal
By Yadarisa Shabong (Reuters) - Detroit-based American Axle and Manufacturing will buy GKN Automotive owner Dowlais in a cash-and-stock deal, valuing the London-listed firm at about 1.16 billion pounds ($1.44 billion), the companies said on Wednesday. Dowlais shares jumped as much as 13%, but had pared gains to trade up 4.6% at 71.5 pence by 1418 GMT. RBC analysts said the offer "somewhat undervalues what is an attractive Tier 1 auto asset during the ongoing wider auto slump". American Axle shares fell 2.8% to $5.66. The deal values Dowlais, maker of driveline systems and other automotive parts, at 85.2 pence per share, a premium of nearly 25% to the stock's close on Tuesday. The combined group aims to benefit from greater scale as the auto industry grapples with volatile demand for electric vehicles, economic uncertainties and the global expansion of Chinese EV makers. "I think consolidation in the industry is definitely required and we want to be a first mover in consolidation in the driveline space," Dowlais CEO Liam Butterworth told Reuters. Butterworth said consolidating was necessary as suppliers need a broader portfolio to cater to the varied needs of customers at a time when major players China, the United States and the European Union are taking very different approaches to the EV transition. Dowlais, which operates in more than 20 countries, is set to join a growing list of takeovers as foreign companies take advantage of UK firms' relatively cheap valuations. GKN, a mainstay of British engineering, has changed hands multiple times since 2018, when it succumbed to an 8 billion pound hostile bid from Melrose. In 2023, Melrose spun off GKN's automotive and powder metallurgy businesses by listing Dowlais - named after the village in South Wales where GKN was founded. Its London-listed shares have lost more than 40% of their value since the spin-off. Over the past year, Dowlais has seen revenues fall, with its ePowertrain business hit by a subdued EV market. The two companies offer a range of automotive parts supporting internal combustion engines, hybrid and electric powertrains. AAM expects synergies of $300 million by the end of the third year after the deal closes. Shareholders of the U.S.-based company are expected to hold 51% of the combined entity, with Dowlais shareholders owning approximately 49%. The deal is expected to close this year subject to shareholder and regulatory approvals including from the European Union, United States, and China, where Dowlais operates a joint venture. Sign in to access your portfolio
