Break-up of 259-year-old engineering giant GKN to begin within weeks after it was snapped up by vulture investment firm
- Melrose is expected to sell off the metallurgy arm in an auction next month
- Company bosses are expected to pocket bonuses of £285million from the sale
- The company employs 7,400 staff at 34 sites in ten countries around the world
The break-up of 259-year-old engineering firm GKN is to begin within weeks after it was bought by a vulture investment firm.
GKN’s asset-stripping owner Melrose is expected to sell off the prized powder metallurgy arm in an auction that begins next month, as bosses look to secure bonuses of as much as £285million.
It fires the starting gun on a break-up promised by Melrose chiefs when they seized control of GKN, following a bitter takeover battle earlier this year. There were fears that the only aim of the bosses was to secure a vast payout.
The company is expected to be sold off in an auction next month, with bosses looking to pocket bonuses of £285million
Melrose chairman Christopher Miller, who claimed that a quick sale of the metallurgy arm would not be appropriate, is thought to have since U-turned.
About 7,400 staff are believed to work in the division at 34 sites in ten countries, although none is in the UK. It generated sales of £1.2billion last year – the business’ best-performing unit.
Labour MP Jack Dromey said: ‘At GKN, centuries of tradition of the best of British manufacturing is now at risk of being broken up and sold.
‘We warned that Melrose was in it to make a fast buck rather than serve the best interests of Britain and our manufacturing base.
‘Ministers should now hold them to account.’
The metallurgy operation has attracted strong interest according to the Sunday Telegraph, which has prompted Melrose to sell it sooner than planned. The firm declined to comment.
Around 7,400 staff are believed to work in the company’s division at 34 sites in ten countries
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