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Apollo Walks Away From $2 Billion Bodycote Deal
6 Jun
Summary
- Apollo Global Management abandoned a £1.52 billion takeover bid for Bodycote.
- Bodycote shares fell significantly following the terminated acquisition talks.
- Global market uncertainty is cited as a potential factor affecting deals.
Apollo Global Management and Bodycote have concluded negotiations concerning a £1.52 billion ($2 billion) acquisition proposal, as announced on Friday. This development caused Bodycote's shares to decline by up to 12%. Apollo had presented an all-cash offer to Bodycote two weeks ago, which was made after several previous approaches. The offer represented a significant premium of nearly 27% to the share price before its disclosure.
Despite the sharp decline on Friday, Bodycote's share price has experienced an approximate 5% increase throughout the year. The company, which provides thermal processing services to enhance metal components, remains confident in its strategic direction. Analysts suggest that Apollo's interest validated the market's undervaluation of Bodycote's business quality and its ongoing strategic transformation. Apollo stated it does not intend to make a firm offer for six months, adhering to British takeover regulations.
