Today Melrose Industries has announced its takeover bid for GKN has won the support of more than 50% of the company’s investors.
The UK’s aerospace and defence trade association ADS said the company should now reflect on concerns raised in recent weeks and offer binding commitments to address them.
ADS Chief Executive Paul Everitt said:
“This is a worrying time for GKN, its employees, pensioners, suppliers and customers. Now that shareholders have voted in favour of accepting their bid, Melrose should talk to these important stakeholders and reflect on issues and concerns that have been raised during recent weeks.
“Melrose should then formally respond and be prepared to offer the legally binding commitments allowed within current legislation.
“It will be for Government to assess whether these are sufficient or whether the bid should be referred to the Competition and Markets Authority, under the powers outlined by the Business Secretary earlier this week.
“GKN is an important part of the UK industrial landscape and it is important that its owners continue to invest for the long-term and support high value jobs both directly and throughout its UK supply chain.”