Following this morning’s BEIS Committee evidence session with
witnesses from GKN, Melrose Industries, and Unite the
union, MP, Chair of the Business,
Energy and Industrial Strategy Committee, has written
[letter attached] to Simon Peckham, Chief Executive, on Melrose’s
plans for the GKN pension scheme and on post-offer undertakings
regarding the future of the business.
Following the session, MP, Chair of the Business,
Energy and Industrial Strategy (BEIS)
Committee said: “This morning we heard
Melrose’s broad strategy for GKN but it was light on specifics
about the future of the business. For shareholders, workers and
pension holders, Melrose should do more than point to its track
record with smaller acquisitions. Melrose should set out their
plans for applying for clearance from the Pensions Regulator and
the areas in which they would be willing to consider making
formal post-offer undertakings regarding their future plans for
the business.”
The Work & Pensions Committee today published a letter from the
Pensions Regulator regarding the proposed takeover of GKN by
Melrose. The letter expresses TPR’s concerns that “the increased
leverage involved in the proposed takeover by Melrose is likely
to have a detrimental impact on covenant.”
This morning’s Business, Energy and Industrial
Strategy (BEIS) Committee evidence session on GKN
is available to view on Parliament TV.
Witnesses this morning were: Panel 1 (GKN) Anne
Stevens, Chief Executive, Jos Sclater, Group Finance
Director
Panel 2 (Melrose Industries), Christopher Miller, Co-founder
and Executive Chairman, David Roper, Co-founder and Executive
Vice-Chairman, Simon Peckham, Co-founder and Chief Executive,
Panel 3 (Unite the Union) Tony Burke, Assistant General
Secretary for Manufacturing, Steve Turner, Assistant General
Secretary for Aerospace.
