Upon completion, Dowlais shareholders will control 49% of the combined company, while American Axle shareholders will retain 51%.
Legal and Financial Advisors
American Axle’s legal team: Allen Overy Shearman Sterling
Dowlais’ legal team: Slaughter and May (UK), Cravath Swaine & Moore LLP (U.S.)
Financial advisers:
American Axle: J.P. Morgan Securities LLC
Dowlais: Barclays Bank PLC, Rothschild & Co.
Corporate brokers: Barclays, Investec Bank PLC
Strategic Goals and Expected Cost Savings
Both companies specialize in technology for internal combustion, electric, and hybrid vehicles. They believe the merger will create a top-tier global supplier in the evolving automotive industry.
American Axle expects the combination to yield $300 million in annual cost savings within three years of completion.
“We are excited to bring together these two outstanding companies to create a leading driveline and metal-forming supplier serving the global automotive industry,” said David Dauch, chair and CEO of American Axle.
Regulatory Approvals and Timeline
The deal will proceed through a scheme of arrangement under the UK Companies Act 2006, requiring at least 75% shareholder approval at a general and court meeting. Specific dates have yet to be announced.
