British Prime Minister Theresa May Vows to “Act in the UK national Interest” on Bid of Melrose for GKN

Photo by UK Home Office/Flickr

Theresa May, the British Prime Minister has vowed to “act in the UK national interest” with regard to the hostile bid that was made by Melrose, an industrial turnaround specialist, for GKN, a centuries-old engineering company.

Today, Theresa May confirmed that the business department would be closely looking at the £7.4bn offer, which GKN has already rejected.

In parliament today, May stated: “Of course, the business department will be looking closely at, and has been following closely the issue.

“I and the government as a whole will always act in the UK national interest.”
Labour MP Jack Dromey raised the issue, saying the hostile takeover would lead to “break-up, sell-off, closures and redundancies”.

Dromey stated: “That would make a mockery of the Industrial Strategy.”

The management of GKN has repeatedly dismissed the bid of Melrose, which would aim to “declutter” the firm by selling driveline divisions and smaller aerospace, after initially improving them.

However, the government of the United Kingdom has raised concerns on national security over the said bid because of the involvement of GKN in producing military aircraft. There is yet to be a launch of an official investigation. However, last month, it emerged that the chairman of GKN, Mike Turner, was summoned to a meeting that was held with the permanent secretary for the Department for Business, Energy and Industrial Strategy (Beis), Alex Chisholm, after both companies met with the secretary of state for business, Greg Clark.