IN BRIEF: American Axle takeover of Dowlais is cleared by China
Dowlais Group PLC - London-based automotive engineering firm - Takeover by Detroit, Michigan-based American Axle & Manufacturing Holdings Inc gets approval in China. Dowlais says the China State Administration for Market Regulation has issued a formal notice approving the combination of the two companies. EU approval was granted back in October, and Dowlais says all regulatory and antitrust approvals have now been received. The court hearing to implement the scheme of arrangement is scheduled for January 30, and the acquisition is expected to be completed on February 3.
In January last year, Dowlais accepted a £1.16 billion takeover offer from AAM, a producer of driveline products and systems. The deal was approved by shareholders in July. Dowlais was spun off from Melrose Industries PLC back in 2023. AAM will take a secondary listing on the London Stock Exchange as part of the acquisition, so that Dowlais shareholders can continue to trade shares of the combined company in London. Dowlais shares will be suspended from trading on February 3 and cancelled on February 4, the same day that AAM shares will start trading in London. Dowlais is a FTSE 250 index constituent, and FTSE Russell has not yet said which company will replace it. As a secondary listing, AAM won’t be eligible.
Current stock price: 93.85 pence, up 0.2% on Friday morning in London
12-month change: up 39%
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