Melrose takeover is a done deal

WARWICKSHIRE-based manufacturing turnaround specialist £1.5bn takeover of German firm Elster is virtually complete.

It has completed the acquisition of more than 95% of Elster’s total share capital in an initial tender offer via its subsidiary Minford.

Melrose says it intends to implement a “squeeze-out” of the remaining Elster shareholders. The squeeze-out process will be subject to German law and is expected to take a number of months to complete once initiated.

The deal was able to go ahead after Melrose received anti-trust clearances in Ukraine and Russia. Approval from the European Commission and regulatory authorities in the United States was granted after they said they were satisfied all the conditions surround the tender offer had been met.

Elster is a world leading engineering company and one of the world’s largest providers of gas, electricity and water meters, gas utilisation products and related communications, networking and software solutions.

Melrose said the acquisition represented a significant opportunity for it to execute its strategy of buy, improve, and sell.