(Reuters) -Detroit-based American Axle and Manufacturing said on Friday it plans to seek a secondary listing of its shares in London after its $1.4 billion acquisition of GKN Automotive owner Dowlais. “This will ensure a greater range of both existing and prospective shareholders are able to access the future value creation opportunity of the combination,” […]
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American Axle plans secondary London listing after GKN Automotive deal
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(Reuters) -Detroit-based American Axle and Manufacturing said on Friday it plans to seek a secondary listing of its shares in London after its $1.4 billion acquisition of GKN Automotive owner Dowlais.
“This will ensure a greater range of both existing and prospective shareholders are able to access the future value creation opportunity of the combination,” said the auto parts supplier, which is listed on the New York Stock Exchange.
American Axle and Manufacturing announced a cash-and-stock deal for UK peer Dowlais in January, aiming to benefit from greater scale as the auto industry grapples with volatile demand for electric vehicles, economic uncertainties and the global expansion of Chinese EV makers.
“Recent global events have further highlighted the attractiveness of the combination,” the company said, adding that regulatory filings were progressing as planned.
U.S. President Donald Trump had unveiled a 25% tariff on imported cars and light trucks in March.
In a partial rollback of his policies, Trump has granted automakers a two-year window to increase the share of domestic components in vehicles built in the United States.
($1 = 0.7509 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Savio D’Souza and Mrigank Dhaniwala)