Global Regulatory Clearances in Sight
American Axle confirmed that the U.S. antitrust waiting period under the Hart-Scott-Rodino Act has expired. Still, the deal hinges on competition approvals from regulators in the European Union, China, Brazil, and Mexico.
To solidify its international credentials, American Axle announced plans to launch a secondary listing on the London Stock Exchange, a move that will not be a condition for deal completion but symbolizes its commitment to long-term expansion in the U.K. and Europe.
Deal Terms: Premium Offer and Shareholder Control Split
Under the deal’s terms, Dowlais shareholders will receive:
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0.0863 new American Axle shares
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42 pence in cash
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Up to 2.8 pence in a final dividend from Dowlais
This structure values each Dowlais share at 85.2 pence, a 25% premium over the stock’s last closing price before the deal was announced. Shareholders will also have the flexibility of a mix-and-match option to tailor their share-cash ratio.
Once finalized, American Axle shareholders will hold 51% of the new group, while Dowlais investors will own 49%, creating a power-balanced merger between the two firms.
