Britain’s largest union, Unite, is calling on the House of Commons
business, energy and industrial strategy committee to insist that
the business secretary Greg Clark calls in and reviews Melrose’s
debt fuelled takeover bid of GKN. It comes amid fears that the deal
could damage the government’s industrial strategy and national
defence interests. The call comes ahead of a meeting on Wednesday
(7 February) with the business secretary Greg Clark, where Unite
workplace representatives from...Request free trial
Britain’s largest union, Unite, is calling on the House of Commons
business, energy and industrial strategy committee to insist that
the business secretary calls in and reviews Melrose’s
debt fuelled takeover bid of GKN. It comes amid fears that the deal
could damage the government’s industrial strategy and national
defence interests.
The call comes ahead of a meeting on Wednesday (7 February) with
the business secretary , where Unite workplace
representatives from GKN will urge the secretary of state to use
his powers under the Enterprise Act (2002) to block Melrose’s bid
in the public interest.
Under the Act the secretary of state can intervene in mergers where
they give rise to certain specified public interest concerns,
including issues of national security. GKN is a major defence
partner to Airbus and Boeing and supplies and maintains UK defence
equipment used by the Royal Air Force and the Army.
Unite is also raising its concerns over Melrose’s bid with the
House of Commons defence committee and the secretary of state for
defence . Unite believes that if
successful, long term investment could dry up leading to cuts in
research and development which would harm the UK’s current and
future defence capability.
Commenting Unite assistant general secretary Steve Turner
said: “The House of Commons business committee needs to insist
that the business secretary urgently calls in and reviews
Melrose’s debt fuelled bid of GKN.
“Melrose’s bid, which is based on borrowing vast amounts of cash to
bung to shareholders, will see GKN saddled with £1.3 billion of
debt in a move harking back to the ‘cowboy capitalist’ takeovers of
the 1980s.
“The short term financial engineering of Melrose’s bid is totally
at odds with the long term approach and investment that is needed
to power the government’s industrial strategy.
“Because of GKN’s extensive defence work the bid also raises
serious questions about UK defence interests and capability. Aimed
at turning a quick buck there is a real danger that if the bid is
successful long term investment will dry up, leading to cuts in
research and development and the UK’s defence capability being
harmed.
“When they meet him, Unite workplace representatives will be asking
the business secretary to use the power he has to act in
the national interest and intervene to block this bid, as well as
strengthening takeover laws to ensure public and social interests
are put first.
“The business secretary cannot duck his responsibility. He needs to
act in the national and public interest and block this bid which
will ultimately result in parts of successful engineering being
atomised and vital engineering skills and expertise lost.”
ENDS
