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Home World Business

Government wades into GKN takeover battle

byCT Report
27/03/2018
in World Business
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Business Secretary Greg Clark has written to Melrose demanding “binding” commitments from the turnaround specialist over its £8.1bn bid for GKN.
Mr Clark sought “extensive and clear” measures over GKN’s workforce, research and development, and pension schemes.
He also raised concerns over national security given GKN’s role in supplying the UK armed forces.
In response, Melrose set out a number of pledges, including not selling GKN’s Aerospace Division for five years.
It also said that for five years it would maintain GKN’s UK listing, maintain its UK headquarters, and ensure research and development (R&D) spending remained at least 2.2% of sales.

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