Greg Clark calls for legally-binding commitments from Melrose in proposed takeover of GKN

Beyond his formal statutory role, he said he was concerned to ensure significant takeover bids should not act against the interests of the economy, employees or the broader set of stakeholders.

He believed Melrose should set out more clearly its intentions towards wider stakeholders and more specifically to make legally-binding commitments. Yesterday he wrote to them asking them for commitments and had received a reply.

He said: "I have sought a legally binding commitment from them to ensure the long-term ownership of the business without prior consent of the government. In the event of a successful bid, the MoD would look for legally binding commitments in relation to management of defence contracts."

It was for shareholders of GKN to decide, “but my strong belief is that where broader interests are at stake, and having established a new regime by which legally-binding commitments about the future can be given, they should be used before the opportunity to do so expires.”