GKN snaps up a bargain by buying Volvo's aero-engine arm for lower than expected £633m
GKN has sealed a deal to buy the aero-engine arm of the Swedish truck-maker Volvo for £633m, less than the market was expecting them to pay for a takeover that had already been widely welcomed.
Shares in the British engineer jumped 13 per cent to 211p, even though it announced a £140m share placing to help pay for the purchase.
GKN's chief executive Nigel Stein said it was an attractive acquisition "creating a market leader in aero-engine comp-onents". The payment includes £513m for the business, a £50m pension settlement and £70m refinancing.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies