Melrose gets US, Canada antitrust clearance for GKN deal

[LONDON] Turnaround specialist Melrose , locked in a hostile takeover of British engineering firm GKN, said on Monday it had received clearance from competition regulators in the United States and Canada for the £7.4 billion (S$13.6 billion) deal.

GKN has rejected Melrose's bid, describing it as "low price and high risk" but Melrose is keeping up the pressure.

It said it had received clearance in respect of US and Canadian antitrust issues.

Melrose will, however, still have to secure approval from the Committee on Foreign Investment in the United States (CFIUS) due to GKN's role as a supplier of components to the US and British militaries, a ruling that could take longer to come.

REUTERS