AAM and Dowlais win Chinese antitrust approval for $1.44bn merger

American Axle & Manufacturing (AAM) and Dowlais Group person secured Chinese antitrust clearance, completing regulatory approvals up of their planned February 2026 merger.

The companies said the determination from China’s State Administration for Market Regulation means each conditions tied to regulatory and contention approvals for the transaction person present been met.

The US automotive and mobility supplier struck the woody successful January past twelvemonth to get UK-based Dowlais Group successful a cash-and-share transaction worthy astir $1.44bn.

Under the agreed structure, Dowlais shareholders volition person 0.0863 caller AAM communal shares and 42 pence successful currency for each Dowlais share.

They volition besides person up to 2.8 pence per stock linked to Dowlais’ FY24 last dividend anterior to closing.

After completion, AAM investors are expected to power 51% of the combined company, with Dowlais shareholders owning the remaining 49%.

Based connected AAM’s closing stock terms connected 28 January 2025, the transaction values Dowlais astatine 85.2 pence per share, representing a 25% premium to Dowlais’ closing stock terms connected that date.

Dowlais Group is an automotive engineering and car parts shaper operating crossed automotive exertion and pulverization metallurgy.

Its businesses, GKN Automotive and GKN Powder Metallurgy, span 70+ facilities successful 19 countries.

Commenting connected the acquisition astatine the clip of its announcement, Dowlais seat Simon Mackenzie Smith said: “The strategical rationale for the operation is clear: together, we make a planetary person with enhanced fiscal strength, broader diversification and a market-leading merchandise portfolio that spans accepted and electrified powertrain solutions.”

The Chinese clearance follows unconditional support granted earlier by the European Commission, satisfying the EU antitrust requirement.

Approvals person besides been secured successful the US, India, the UK, South Korea, Taiwan and Turkey, taking the full to 7 of 10 required jurisdictions.

The merger remains contingent connected tribunal support of the strategy astatine a proceeding scheduled for 30 January 2026.

"AAM and Dowlais triumph Chinese antitrust support for $1.44bn merger" was primitively created and published by Just Auto, a GlobalData owned brand.

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