Please let us know your free update
GKN’s old car category, Dowlais, is looking for a scale to survive the transition to electric vehicles, so it is American AXLE & MANUFACTURING in cash and share transaction I agree that it will be acquired.
Under the transaction, American AXLE acquires the FTSE 250 group Dowlais with 85.2 pence A shares and represents a 25 % premium up to the closing price on Tuesday. After the announcement, the London listed group shares increased by more than 10 %.
This contract is part of the continuous outflow of companies on the London Stock Exchange, which has been the largest departure since 2009 last year.
In the statement, the two companies said that the combination of the Atlantic Ocean will provide a more powerful balance sheet and a larger geographical footprint as the industry shifts to replace the promotion technology.
Following the merger that requires shareholder voting, Dowlais shareholders own 49 % of American Axle of all groups.
The car manufacturer is struggling in the automotive parts industry because the automaker has shifted to EVs and suffers from higher costs to meet more strict regulatory requirements to reduce emissions.
Dowlais, which manufactures vehicle parts, was acquired by the list of turnaround specialists, Melros Industries, as part of a 11 billion dollar transaction to buy an engineer GKN. The value is more than half.
Mark Fielding, an analyst of RBC Capital Markets, states:
