16th May 2025 09:22
Dowlais Group PLC - London-based automotive engineering - American Axle & Manufacturing Holdings Inc says integration planning for its acquisition of Dowlais has "continued at pace" in recent weeks. The two industry peers still believe the "strategic rationale for the combination remains compelling", AAM says. Referring to the recent US trade tariff announcements, Detroit, Michigan-based AAM says: "Recent global events have further highlighted the attractiveness of the combination, which will create a stronger business that is resilient across customers, geographies and products, resulting in the combined group being better positioned to navigate and succeed in an increasingly dynamic automotive industry and macroeconomic environment."
AAM, a maker of driveline products and systems, thinks it can achieve at least USD300 million in annual run-rate cost synergies by the end of the third year after completion of the acquisition. Dowlais accepted the cash-and-shares takeover offer from AAM back in January. At the time, it implied a value of 85.2 pence per Dowlais share or GBP1.16 billion for the company as a whole. Dowlais was spun off from Melrose Industries PLC back in 2023.
AAM also on Friday said it will seek a secondary listing on the London Stock Exchange as part of acquisition, so that Dowlais shareholders can continue to trade shares of the combined company in London.
Current stock price: 66.68, down 0.8% on Friday morning in London
12-month change: down 15%
By Tom Waite, Alliance News editor
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