GKN Shareholders Approve £8.1bn Hostile Takeover Bid From Melrose Industries

Shareholders in one of Britain's biggest engineering firms GKN have accepted a hostile takeover bid from Melrose Industries.

There are concerns the £8.1 billion deal could result in GKN, who built the Spitfires that defended Britain in the second world war, losing business and being stripped of its assets.

A total of 52.43% investor votes were cast in favour of the deal going ahead, just above the 50% plus 1 share threshold.

GKN accepted defeat shortly after and Melrose's victory brings to a close a bitter battle that has raged since January, although there were immediate calls for Business Secretary Greg Clark to intervene in the deal.

Unite assistant general secretary Steve Turner called on Mr Clark to use powers under the Enterprise Act to call the deal in on national defence grounds.

The UK's aerospace and defence trade association ADS also said the Government must assess whether the bid should be referred to the Competition and Markets Authority.

Unions and MPs have both warned of asset stripping and flagged national security concerns.

GKN has a history that dates back to the 1900s and was instrumental in wartime manufacturing.

During the First World War, it was heavily involved in making steel for military purposes, such as shells.

After the outbreak of the Second World War, GKN produced Spitfires and specialised tanks for the D-Day landings, as well as millions of steel helmets.

GKN is headquartered in Redditch and has its biggest factory in Filton near Bristol, where it employs 1,454 workers.

Other plants in the UK include Cowes, Birmingham, Luton, Telford, Kings Norton, Portsmouth, Uxbridge, Leek and Oxford.

Melrose chairman Christopher Miller said in a statement: "We are delighted and grateful to have received support from GKN shareholders for our plan to create a UK industrial powerhouse with a market capitalisation of over £10 billion and a tremendous future.

"We are looking forward to working with GKN's talented workforce and to delivering for customers and all stakeholders. Melrose has made commitments as to investment in R&D, skills and people and we are very excited about putting these into action.

"Let me assure you that GKN is entering into very good hands."