Several MPs today raised the proposed takeover of GKN by
Melrose during BEIS questions today.
Sir , Leader of the Liberal
Democrats, said: “Since the aerospace sector requires long-term
planning and investment, does the Secretary of State not share my
alarm at the threatened takeover of tier-one supplier GKN by a
company-turnaround company specialising in maximising shareholder
returns over five years maximum? Is this not a national security
issue?
BEIS secretary replied he could not comment on
the specific case because of his quasi-judicial role. He had
spoken to both of the chief executives and was keeping the
situation under close review.
, Labour MP for Birmingham
Northfield, said: “Something that is really important to SMEs in
the automotive and aerospace industries supply chains is
stability amongst larger tier-one suppliers and given that the
Melrose bid for GKN splits up and sells off that company, as
anticipated, that can’t be in the interests of either sector or
SMEs in this country.”
Small businesses minister , said: “We are always
sensitive and aware on the impacts of the supply chain.”
, Conservative MP for
Redditch, commented that at the global headquarters of GKN in
Redditch, which employed 200 people, there were concerns about
the pension scheme and the Pensions Regulator was warning that in
the event of a takeover there may be “something to look at
there.”
could not add to ’s earlier answer, but said: “I
can assure the Hon. Lady that the implications of business
actions, and in particular takeovers in relation to pensions
schemes, is a priority for this government and we will continue
to proceed with care and caution to protect the interests of
those members with pension schemes.”
Labour spokesperson said: “GKN is a great British
engineering company forged in the first industrial revolution
with strengths in defence, aerospace, automotive, batteries and
the internet of things which would place it at the heart of our
economy: high skills, high productivity, high wages. But the
debt-driven hostile takeover threatens 6,000 UK workers, pensions
funds and the supply chain. The Secretary of State said he will
not comment on individual cases. But does he believe it is in the
national interest for city investment houses to use debt to
dismantle our industrial base?”
said: “It is very important, in
an industrial economy, to have investment from those with the
capital to invest to go into our companies. That is why we have a
regime that limits the grounds for intervention, but there are
certain grounds I will have to consider.”
, Labour MP for Birmingham
Eddington, said: “The hostile takeover of GKN by Melrose
threatens breakup, sale and closures. The Secretary of State has
powers under Section 58 of the Enterprise Act to intervene. Will
he intervene to block this hostile takeover which is not in the
national interest?” repeated his earlier reply.
