A major American investment firm has walked away from a multi-billion dollar acquisition deal involving a British industrial company, according to announcements made Friday by both organizations.
Apollo Global Management confirmed it will not proceed with a formal takeover bid for Bodycote, a thermal processing services firm based in the United Kingdom. The proposed deal was valued at £1.52 billion, equivalent to approximately $2.04 billion.
Last month, the alternative asset manager had put forward a conditional cash proposal following multiple earlier attempts to engage the company. The offer of 885 pence per share represented a substantial premium of nearly 27% above market value, causing Bodycote’s stock price to jump significantly.
Apollo provided no explanation for abandoning the acquisition attempt. Under British regulations governing corporate takeovers, the firm is now prohibited from making another bid for the next six months, except under certain specified circumstances.
“Apollo continues to hold Bodycote and its management team in high regard, is appreciative of the discussions with them and Bodycote’s board of directors,” the group said in a statement.
