Latest news with #LiamButterworth
Yahoo
16-05-2025
- Automotive
- Yahoo
American Axle to pursue secondary listing in U.K. after Dowlais deal
-- American Axle (NYSE:AXL) and Manufacturing said Friday it plans to pursue a secondary listing in London following its $1.4 billion acquisition of Dowlais Group (LON:DWL), the parent company of GKN (LON:GKN) Automotive. The Detroit-based company, already listed on the New York Stock Exchange, said the move is aimed at broadening investor access. It believes this will "ensure a greater range of both existing and prospective shareholders are able to access the future value creation opportunity of the combination." Jefferies analysts described the announcement as "a very interesting and unexpected update, but one that we see as positive, and as aligning more closely with the interests of shareholders if the deal does proceed." "We have written on our thoughts on this deal several times, including around the attractiveness of the US small-cap element, so we see this as welcome," analysts led by Vanessa Jeffriess added. The cash-and-stock deal to acquire U.K.-based Dowlais was first announced in January. The deal values the London-listed firm at around 1.16 billion pounds ($1.44 billion). Dowlais CEO Liam Butterworth said consolidation is important, as suppliers must offer a wider range of products to meet the diverse demands of customers, especially with China, the United States, and the European Union each pursuing distinct strategies in the shift to electric vehicles. American Axle expects the merger to provide scale benefits at a time when the automotive sector faces fluctuating EV demand, macroeconomic headwinds, and rising competition from Chinese electric vehicle makers. 'Recent global events have further highlighted the attractiveness of the combination,' the company said Friday, noting that regulatory filings were proceeding as scheduled. In March, U.S. President Donald Trump introduced a 25% tariff on imported cars and light trucks. However, in a partial easing of trade restrictions, automakers were granted a two-year grace period to boost the use of domestic components in vehicles assembled in the U.S. Related articles American Axle to pursue secondary listing in U.K. after Dowlais deal UBS upgrades Caterpillar as trade risks ease, but macro uncertainty remains Market reaction to Coinbase hack 'likely overblown': Mizuho Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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
The Guardian
29-01-2025
- Automotive
- The Guardian
US rival agrees £1.2bn deal for British car parts firm in new hit to UK stock market
The British car parts maker Dowlais has agreed to a £1.2bn takeover by its US rival American Axle & Manufacturing, in the latest departure from the London stock market. The main operation of Dowlais, which has been listed on the FTSE 250 index since 2023, is GKN Automotive, which formed part of the GKN engineering business that was bought by the private equity group Melrose in an acrimonious £8bn takeover battle in 2018. American Axle & Manufacturing will pay £1.16bn in cash and shares for Dowlais as the two companies aim to weather the transition to electric vehicles. The deal is the largest US takeover deal for a UK company announced so far this year, and follows an exodus of London-listed companies during 2024. There was increased transatlantic mergers and acquisitions activity in 2024, according to analysis by the law firm A&O Shearman, which found that the relative strength of US equity markets made the UK an attractive hunting ground for potential bidders. The Dowlais takeover comes just months after the CEO of Dowlais said carmakers' switch to electric vehicles would take longer than expected, as several manufacturers scaled back their EV plans. The companies said that joining together would 'create a leading global manufacturer with the scale, product portfolio, technology and global diversification required to lead and innovate in a transitioning business environment'. Dowlais, which supplies 90% of the world's carmakers, employs about 30,000 people globally. Under the terms of the deal, American Axle & Manufacturing will acquire it for 85.2p a share, a premium of 25% on the UK firm's closing share price on 28 January. Dowlais shares climbed by as much as 11% on Wednesday, before falling back slightly. Dowlais's chief executive, Liam Butterworth, said the deal would create a company which could be a leading supplier as the world 'transitions to electrified mobility'. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Butterworth said last August that European sales of EVs were challenging because of changes to government subsidies and policies supporting the move away from petrol and diesel cars, as the company announced a slide in profits.
Yahoo
27-01-2025
- Business
- Yahoo
Bullish Dowlais Group Insiders Loaded Up On UK£738.8k Of Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Dowlais Group plc (LON:DWL), it sends a favourable message to the company's shareholders. While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing. Check out our latest analysis for Dowlais Group In the last twelve months, the biggest single purchase by an insider was when CEO & Director Liam Butterworth bought UK£256k worth of shares at a price of UK£0.81 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.68). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. In the last twelve months Dowlais Group insiders were buying shares, but not selling. They paid about UK£0.71 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction! Dowlais Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying. For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Dowlais Group insiders own 0.3% of the company, worth about UK£2.6m. We prefer to see high levels of insider ownership. The fact that there have been no Dowlais Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Dowlais Group insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Dowlais Group is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored... If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
