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American Axle & Manufacturing (AAM) and Dowlais Group have secured Chinese language antitrust clearance, finishing regulatory approvals forward of their deliberate February 2026 merger.
The businesses stated the choice from China’s State Administration for Market Regulation means all circumstances tied to regulatory and competitors approvals for the transaction have now been met.
The US automotive and mobility provider struck the deal in January final 12 months to accumulate UK-based Dowlais Group in a cash-and-share transaction value roughly $1.44bn.
Beneath the agreed construction, Dowlais shareholders will obtain 0.0863 new AAM widespread shares and 42 pence in money for every Dowlais share.
They can even obtain as much as 2.8 pence per share linked to Dowlais’ FY24 remaining dividend previous to closing.
After completion, AAM buyers are anticipated to regulate 51% of the mixed firm, with Dowlais shareholders proudly owning the remaining 49%.
Based mostly on AAM’s closing share worth on 28 January 2025, the transaction values Dowlais at 85.2 pence per share, representing a 25% premium to Dowlais’ closing share worth on that date.
Dowlais Group is an automotive engineering and automotive elements maker working throughout automotive know-how and powder metallurgy.
Its companies, GKN Automotive and GKN Powder Metallurgy, span 70+ amenities in 19 international locations.
Commenting on the acquisition on the time of its announcement, Dowlais chair Simon Mackenzie Smith stated: “The strategic rationale for the mixture is obvious: collectively, we create a world chief with enhanced monetary power, broader diversification and a market-leading product portfolio that spans conventional and electrified powertrain options.”
The Chinese language clearance follows unconditional approval granted earlier by the European Fee, satisfying the EU antitrust requirement.
Approvals have additionally been secured within the US, India, the UK, South Korea, Taiwan and Turkey, taking the entire to seven of ten required jurisdictions.
The merger stays contingent on court docket approval of the scheme at a listening to scheduled for 30 January 2026.
“AAM and Dowlais win Chinese language antitrust approval for $1.44bn merger” was initially created and printed by Simply Auto, a GlobalData owned model.
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