Today's shareholder vote brings the months-long saga to an end
GKN investors have voted to approve a takeover bid by turnaround specialist Melrose.
Shares in GKN surged by more than 5.5 per cent after the results of the vote were announced, with Melrose's offer gaining approval with 52.4 per cent in favour of the bid. Melrose's stock went up more than 1.3 per cent.
Melrose chairman Christopher Miller said: "We are delighted and grateful to have received support from GKN shareholders for our plan to create a UK industrial powerhouse with a market capitalisation of over £10bn and a tremendous future. We are looking forward to working with GKN's talented workforce and to delivering for customers and all stakeholders. Melrose has made commitments as to investment in research and development, skills and people and we are very excited about putting these into action."
The investment group made those commitments in response to demands by business secretary Greg Clark earlier this week that Melrose make various assurances in order to protect GKN if the deal got the green light. Critics of the deal had raised concerns that GKN would be broken up and sold off, describing GKN as an 'asset stripper'.
"Let me assure you that GKN is entering into very good hands," Mr Miller added.
"We would like to thank our shareholders for their continued support of the Melrose strategy thus far. We are full of enthusiasm as we begin this next stage of the Melrose story and look forward to creating substantial value for our shareholders, old and new."