Key facts
- Apollo Global Management withdrew its £1.52 billion ($2 billion) takeover bid for Bodycote.
- Bodycote shares fell as much as 12% after the bid withdrawal.
- Apollo stated it does not intend to make a firm offer for Bodycote.
- The offer valued Bodycote at 885 pence per share.
- Apollo is restricted from approaching Bodycote for six months under British takeover rules.
Apollo Global Management has withdrawn its £1.52 billion ($2 billion) takeover proposal for the UK-based thermal processing services group Bodycote. The U.S. asset manager had submitted an all-cash bid two weeks prior, valuing the company at 885 pence per share, which represented a nearly 27% premium to the closing price before the bid was disclosed. Following the withdrawal announcement, Bodycote's shares fell as much as 12%. Apollo stated it does not intend to make a firm offer, citing no specific reason but expressing high regard for Bodycote and its management. Under British takeover rules, Apollo is now restricted from making another approach for six months, barring specific conditions. Analysts believe Apollo's interest validated the view that Bodycote's quality and strategic transition are undervalued. Bodycote confirmed it is no longer in an offer period and expressed confidence in its strategy and growth prospects, noting its services are used in aerospace, defence, automotive, and energy sectors. The company recently maintained its full-year 2026 guidance while acknowledging geopolitical uncertainty.