Dowlais’ directors, who hold 0.3% of the company’s shares, unanimously support the transaction.
“Our shareholders will benefit not only from an immediate premium but also from the significant synergies this combination will deliver,” said Simon Mackenzie Smith, chair of Dowlais.
The merger is expected to close in 2025, pending regulatory approvals in the U.S., European Union, China, Brazil, and Mexico, as well as American Axle shareholder consent for issuing new shares.
As part of the agreement, Dowlais will cancel its previously announced £50 million share buyback program.
