GKN’s EV division success helps defence against hostile takeover

Global engineering group GKN is countering a hostile takeover bid by Melrose with new figures suggesting its business is poised to accelerate as part of the electric car revolution.

The FTSE 100 firm has revealed raised forecasts for its electric driveline division, which makes parts for BMW and Volvo as well as Chinese brands, The Daily Telegraph reports

The business is now expected to generate sales of £275 million (NZ$525.5m) in 2020, up from a prior forecast of £200m (NZ$382.1m) and last year’s figure of £33m (NZ$63m).

GKN Driveline chief executive Phil Swash says the forecast underscores that the company is “well positioned to capitalise on the strong market growth in hybrid and electric vehicles”, with a £2 billion (NZ$3.8b) order book.

Melrose is courting shareholders with a £7b (NZ$13.36b) hostile bid. It welcomes the news as “part of the justification of the premium that we are offering to GKN shareholders as we seek to create a £11b (NZ$21b) value powerhouse by merging our two businesses”.