It looks like the hostile takeover of one Britain's largest engineering firms by an "investment" firm has succeeded:
https://www.theguardian.com/business...lrose-takeover
They have only promised to keep the aerospace part as a whole for only 5 years,but after that anything could happen:
https://www.telegraph.co.uk/business...port-gkn-deal/
Melrose are primarily concerned with short term profit making not longterm investments:
https://www.independent.co.uk/news/b...-a8279311.html
However,Airbus who is the biggest customer of GKN said they were against the deal:
https://www.theguardian.com/business...e-gkn-takeover
https://www.ft.com/content/291893d0-...e-cc62a39d57a0
https://www.ft.com/content/1342c572-...b-bc4b9f08f381
https://www.irishtimes.com/business/...-bid-1.3429795
https://www.independent.co.uk/news/b...-a8257336.html
It seems Melrose has not really bothered to communicate with Airbus that well,and Airbus is seriously considering going elsewhere due to the uncertainity of the future of GKN Aerospace.
GKN is also strategically important as an engineering firm in this country(it has a very long history over 250 years of being an important government supplier).Quote:
The bosses of GKN and its largest customer Airbus have cast further doubt on Melrose's £8.1bn takeover bid for the engineering giant.
Tom Williams, the aircraft maker's chief operating officer, warned it could not give any new business to GKN if the deal with turnaround specialist Melrose went ahead.
He said: "The nature of our industry is one that requires a commitment to long-term investment and strategic vision.
Melrose increases GKN hostile takeover bid to £8.1bn
"The industry does not lend itself to shorter-term financial investment which naturally reduces R&D budgets and limits vital innovation.
"It would be practically impossible for us to give any new work to GKN under such an ownership model when we don't know who will be the long-term investor."
The comments will be a blow to Melrose as Airbus is GKN's largest customer, representing 20% of its aerospace sales last year.
GKN manufactures parts for Boeing 737 jets and Black Hawk helicopters.
Earlier this week GKN rejected a final £8.1bn takeover offer from Melrose, saying it "continues to fundamentally undervalue" the engineering company.
GKN chairman Mike Turner said: "The comments from Airbus that stress the need for long-term investment and strategic vision in our industry emphasise our firmly held belief that Melrose is not an appropriate owner of GKN.
"Its management lacks the relevant experience and its short-term business model is inappropriate for GKN's customers and investors.
"As we have previously stated, and as these comments from Airbus reinforce, winning new business in our markets would be more difficult if customers were uncertain as to the identity of their future long-term partners."
GKN is attempting to press ahead with a restructure in the face of Melrose's overtures, which include merging its automotive business with US firm Dana in a 6.1 billion US dollar (£4.4 billion) deal.
Yay,quick buck Britain strikes again! :(
Edit!!
Also something even more interesting which was pointed out in a comments section:
https://uk.linkedin.com/in/liz-hewitt-448b313
https://www.melroseplc.net/about-us/board-of-directors/
https://www.parliament.uk/documents/...R2017FINAL.pdf
Quote:
Chairman of the Audit Committee
UK House of Lords
Melrose Plc is the company doing the hostile takeover.Quote:
Non Executive Director
Melrose Plc
