Proposed takeover of GKN by Melrose
Today, I was among the MPs from different parties across the House of Commons who argued for Government to intervene over the hostile bid by Melrose for GKN. GKN is one of Britain’s oldest and largest engineering companies making automotive and aerospace components. GKN Aerospace’s Kings Norton plant in my Birmingham Northfield constituency specialises in aircraft windscreens.
I am extremely concerned that the hostile bid that has been put to the shareholders of GKN by Melrose would be bad for the UK’s aerospace and automotive sectors and bad for employees of GKN. In my speech to the House of Commons today, I explained my reasons for taking this view
Analysts have observed that a bid like this one would not be allowed to proceed in France or Germany where the rules governing takeovers are different. It is a yet another reminder that reform of the UK’s Takeover Laws is urgently needed to defend the public interest and safeguard the long term future of our industrial base.
Even our existing takeover laws, however, allow Government Ministers to intervene under Section 58 of the Enterprise Act 2002 where a bid raises national security concerns. GKN Aerospace, including its Kings Norton plant, make specialist components for military as well as commercial aircraft so this bid does indeed involve issues of national security. Today I called on the Government to intervene in this takeover to safeguard national security and put the long term health of British industry first.