Deals
Melrose Said to Drop Out of Race for Philips Lighting Unit
- Likelihood of IPO increases even as sale process continues
- Melrose had been competing with buyout firms, Chinese bidders
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U.K. investment company Melrose Industries Plc has dropped out of the running to buy Royal Philips NV’s lighting division, increasing the likelihood of an initial public offering of the business, according to people familiar with the matter.
Melrose had concerns about the division’s business outlook and a lack of data, said the people, who asked not to be identified because talks are private. While the sales process continues, Philips and its advisers are preparing a potential listing and informally sounding out investors, the people said.