Deals
Melrose’s Success in GKN Takeover May Lie With U.K. Defense Boss
- U.K. defense secretary mulls involving competition watchdog
- Takeover could be challenged on national security grounds
Photographer: Chris Ratcliffe/Bloomberg
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The success -- or not -- of Melrose Industries Plc’s hostile takeover of government contractor GKN Plc may be in the hands of U.K. Defense Secretary Gavin Williamson.
Williamson, who’s only been in the job for five months after a surprise promotion to Prime Minister Theresa May’s cabinet, is weighing whether the ownership change of a manufacturer that dates back more than 250 years poses enough of a security threat to call in the Competition and Markets Authority. While GKN isn’t a major direct supplier to the U.K. armed forces, it makes components used in planes and tanks procured by the Ministry of Defence, as well as parts for government suppliers including BAE Systems Plc.