Melrose’s £1.1bn takeover of US manufacturer moves closer

TURNAROUND specialist Melrose can now move forward on its £1.1bn takeover bid of US manufacturer Nortek after the “window shop period” expired without a better offer being received.

The Warwickshire group now expects the deal to complete on August 31, with all anti-trust conditions having been satisfied previously and the associated rights issue approved by shareholders.

Last year Melrose returned more than £2.6bn to shareholders after the sales of Elster and Bridon.

However the deals, especially the disposal of Elster, had left a big hole in the company’s portfolio as three quarters of the group’s revenue was generated by the business.

It had been looking for the right opportunity before it identified Rhode Island-based Nortek.

Melrose has now told the stock market it “is taking the necessary steps to implement the rights issue” in readiness to complete the deal by the end of this month.