Swiss engineering group ABB has agreed to acquire its smaller UK rival Rotork in a £4.1bn deal. The Zurich-based company will pay 506p per share in cash for Rotork, a leading manufacturer of valve actuators used in pipelines. This acquisition is expected to strengthen ABB's automation division.
"ABB has followed Rotork over many years . . . we are convinced of the compelling strategic fit of the transaction," said ABB chief executive Morten Wierod. The deal contributes to a trend of foreign buyers acquiring UK companies, driven by attractive valuations and international operations.
Elsewhere, UK energy group DCC received an improved offer from a consortium led by US firm KKR and Energy Capital Partners. The consortium has extended its deadline to make a firm offer for DCC to July 27.
Source: Financial Times Companies · Summarized by HeadlinesBriefing