Deals
UK Car Parts Maker Dowlais Agrees to $1.2 Billion Merger With American Axel
- US, UK drivetrain manufacturers reach agreement on merger
- Transaction could spark further US-to-UK deals after Trump win
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American Axle & Manufacturing Holdings Inc., a maker of drivetrain components, has agreed to combine with UK peer Dowlais Group Plc in a transatlantic automotive deal.
A cash-and-share deal valued at about £1.16 billion ($1.44 billion) represents a premium of around 25% to Dowlais’ Jan. 28 closing share price, according to terms released on Wednesday. Shareholders of American Axle will own 51% of the combined company, with Dowlais shareholders controlling the rest. The companies expect the combination to provide cost synergies of around $300 million.