Key facts
- ABB has agreed to acquire Rotork for £4.1 billion.
- The offer price is 506p per share, including a dividend of up to 3p.
- The offer represents a 73% premium on Rotork's closing share price on July 15.
- Rotork's board has unanimously recommended the offer to shareholders.
- Rotork will become part of ABB's automation division.
- This deal is one of 29 proposed takeovers of UK companies over £100m this year.
ABB, a major European industrial engineering group, has agreed to acquire Rotork, a UK-based engineering firm listed on the London Stock Exchange, for £4.1 billion. The offer of 506p per share, which includes a dividend of up to 3p, represents a significant 73% premium over Rotork's closing share price on July 15. Rotork's board has unanimously recommended the offer to its shareholders, citing a compelling strategic fit identified by ABB's CEO, Morten Wierod.
Upon completion, Rotork will operate as a distinct division within ABB's automation business, and the acquisition is projected to contribute approximately 3% to ABB's overall revenue. This deal underscores a trend of foreign buyers acquiring London-listed companies, with Peel Hunt data indicating 29 proposed takeovers of UK firms valued at over £100 million this year. In contrast, the UK's initial public offering (IPO) market has remained subdued, with only seven listings in the first half of the year, raising a total of £577.2 million.
Other notable recent acquisitions of UK companies by foreign entities include the £8 billion takeover of FTSE 100 insurer Beazley by Zurich. The situation has drawn criticism from figures like Andrew Griffith, the Shadow Business Secretary, who has voiced concerns about the health of London's capital markets and the perceived inaction of financial regulators.