Melrose rules out reorganisation of GKN if bid succeeds

Turnaround specialist Melrose said on Wednesday it had reached an agreement with the UK's takeover panel in relation to its legally binding post-offer undertakings for the British engineering firm GKN and would not immediately seek a reorganisation of the business.

The City of London skyline. Melrose said it had reached an agreement with the UK's takeover panel Photo: Jonathan Brady/PA Wire

Melrose said that throughout the five-year undertaking period it would keep the headquarters of the combined group in Britain and the business will continue trading on the London Stock Exchange’s main market.

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Melrose said on March 27 that it would keep the aerospace division of GKN for at least five years and would increase spending on apprentices and research and development by making an innovation centre near Oxford a global centre of excellence.