Create Post
UK's Melrose Industries to spin off GKN automotive unit - FT
(Reuters) -Jet and auto parts supplier Melrose Industries plans to spin off its GKN (LON:GKN) automotive unit as a new UK-listed company as it breaks up one of Britain's oldest engineering businesses, the Financial Times reported on Thursday. GKN, which supplies parts to carmakers such as Volkswagen AG (OTC:VWAGY), aims to trade on the London Stock Exchange next year under a to-be-decided name, the newspaper said, citing people familiar with the matter. (https://on.ft.com/3KWlwBU) Under the plan, turnaround specialist Melrose will separate GKN's automotive and smaller powder metallurgy businesses from its aerospace arm through a demerger of shares, the FT report said. Melrose and GKN Automotive did not immediately respond to a Reuters request for comment. Melrose will retain ownership of GKN Aerospace, a supplier of airframe structures and engine components for aerospace and defence companies including Airbus and Rolls-Royce (OTC:RYCEY), according to the report. The demerged auto group will account for about two-thirds of Melrose's current projected revenue for 2022 of more than 7.5 billion pounds ($8.63 billion). Liam Butterworth, the chief executive of GKN Automotive, is expected to become the head of the demerged business, with a separate chair to be appointed later, the report added. Melrose acquired British engineer GKN in 2018 for $11 billion in a hostile bid. Source: Investing.com #Melrose
- 1
- 0
- ₹0
