US Firm Acquires UK Car Parts Maker Dowlais in £1.2bn Deal

The takeover by American Axle & Manufacturing highlights challenges in the EV transition and the appeal of UK companies to overseas buyers.

Dowlais, a FTSE 250-listed UK car parts supplier, has agreed to a £1.2bn cash-and-stock acquisition by Detroit-based American Axle & Manufacturing.
The deal values Dowlais shares at 85.2p each, a 25% premium to its previous closing price, with shareholders set to own 49% of the combined company.
The acquisition aims to create a global leader in automotive components, leveraging combined resources to address the challenges of transitioning to electric vehicles (EVs).
Dowlais CEO Liam Butterworth emphasized the need for consolidation in the sector and noted that slower-than-expected EV adoption has impacted sales and profits.
The transaction reflects a broader trend of US takeovers of UK companies, driven by the relative strength of US equity markets and a slowdown in London's stock market activity.