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Dowlais Group PLC on Tuesday announced that the requisite majority of its shareholders have voted for its ‘recommended cash and share combination’ with American Axle & Manufacturing Holdings Inc, at a general meeting and court meeting. The London-based automotive engineering firm reported that at the GM, 94.6% of votes cast were in favour of the deal, which is to be implemented by a court-sanctioned scheme of arrangement. ‘We welcome the decision by our shareholders to support the recommended combination with American Axle & Manufacturing,’ commented Dowlais Chief Executive Officer Liam Butterworth. ‘This brings us one step closer to completion of a combination which will significantly increase our scale, creating a global automotive leader with annual revenues of around $12 billion, employing approximately 50,000 people across more than 145 manufacturing facilities and which, as previously announced, is to be traded on both the London and New York stock exchanges.’ He continued: ‘This transaction serves as a compelling opportunity to accelerate our strategy, enhances our competitiveness and offers investors the opportunity to participate in the value creation potential of the new group, including [$300 million] of annual run rate cost synergies the American Axle & Manufacturing directors expect to be substantially achieved by the end of the third full year following completion, whilst also providing our shareholders with a significant immediate cash return.’ Last week American Axle or AAM, which makes driveline products and systems, said its own shareholders had approved the acquisition. Dowlais accepted AAM’s takeover offer in January, with shareholders standing to receive 0.0863 of a new AAM share, as well as 42 pence in cash and up to 2.8p per share in a final dividend. Shares in Dowlais closed 1.7% lower at 71.25p each on Tuesday in London, giving it a market capitalisation of £938.8 million. The company will report its interim results for the period ended June 30 on August 7. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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