Foreign takeovers of London-listed companies continue to gather pace as overseas buyers target UK groups with lower valuations and international operations. In that backdrop, Swiss engineering company ABB agrees to acquire Rotork for £4.1bn to strengthen its automation business.
Highlights
- ABB will acquire UK-based Rotork for £4.1bn, paying 506p per share in cash to enhance its automation division.
- Rotork, a leading manufacturer of safety devices for pipeline valves, closed at 290p on Wednesday before the deal was announced.
- The transaction continues the surge of foreign takeovers of London-listed firms in 2024, fueled by low valuations and global business footprints.
Deal terms and strategic rationale
As reported by Financial Times, ABB says it has agreed to pay 506p a share in cash for Rotork, a UK engineering group known as one of the world’s biggest manufacturers of safety devices used to open and close valves in pipelines.Zurich-based ABB says the acquisition will bolster its automation division. Chief executive Morten Wierod says the company is convinced of the strategic fit of the transaction.
London market takeover trend
The agreement adds to a broader wave of foreign interest in companies listed in London, where overseas buyers are moving at a record pace this year.That activity is being driven by depressed valuations and the global operations of some UK-listed businesses. Rotork shares closed up 0.8% at 290p on Wednesday, before the deal announcement on Thursday.
Our earlier coverage of the UK government’s push to revive London listings explained how ministers have been meeting major private equity and venture capital firms to understand why portfolio companies are bypassing the City despite recent market reforms. We also noted the debate over scrapping stamp duty on share trades and concerns that more UK-listed groups could shift their primary listings to New York, adding to the pressure from takeovers and delistings.
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