Melrose ‘planning sale of £1.5bn GKN division’

Melrose is beginning to put into action its plans to sell off part of GKN, with it reportedly looking to start an auction of the Powder Metallurgy later this year.

GKN was the subject of a protracted, but ultimately successful, £8bn takeover by Melrose, an industrial turnaround group.

The power metallurgy division, which has operations on five continents, will be worth between £1.5bn-£2bn, according to Sky News reports.

In March Melrose secured 52.4% of the voting rights of GKN in support of its bid, which was then approved by the Goverment following written commitments from Melrose.

GKN, the 250-year-old global engineering business headquartered in Redditch, employs around one-tenth of its 60,000 staff in the UK. However it is seen as having an important role to play because of its defence contracts and importance to the supply chain.

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