British engineering firm Rotork has agreed to a £4.1 billion takeover by Swiss firm ABB, adding to a long list of UK companies being snapped up by foreign rivals.
Zurich-based ABB said it would pay 506p a share for Rotork, which is headquartered in Bath and specialises in making flow control equipment for the oil and gas industry.
It marks the latest foreign swoop on a UK-listed company and deals another blow to the London market, coming after a spate of takeovers for the likes of easyJet, Intertek, Tate & Lyle and William Hill owner Evoke.
Morten Wierod, president and chief executive of ABB, said: “ABB has followed Rotork over many years, and we admire the execution excellence, engineering quality and customer trust that Rotork’s teams deliver each day.
“We are convinced of the compelling strategic fit of the transaction that will expand our automation offering.”
ABB said it will run Rotork as a separate division within the wider group.
It cautioned there may be some job cuts where there is overlap in back office areas, such as administrative and support functions, but said these are “not expected to be material”.
It added: “ABB does not intend to make any other headcount reductions that would be material.”
Dorothy Thompson, chairwoman of Rotork, said: “The combination brings together two companies whose purposes are closely aligned, with a shared focus on automation and electrification to enable more sustainable and efficient operations.”
