Automotive Newsletter Q1 2018
In Q1 2018, M&A activity decreased in terms of aggregated deal value of completed deals as well as in terms of absolute deal numbers of completed deals compared to Q4 2017.
The automotive market is still seeing consolidation which is primarily dominated by the megatrends of connectivity, autonomous driving, sharing & services and e-mobility (CASE).
Transaction activity in the automotive sector is expected to increase from Q2 2018, backed by some large transactions which have already been announced (including GKN). Corporates are also having to evaluate their business models to stay competitive in the rapidly changing market which should lead to increased M&A.
Furthermore, the continued low interest rate environment works as a catalyst for global M&A activity.
Top M&A deals Q1 2018
- Melrose plc, a UK-based investment company focusing on manufacturing and industrial related sectors, submitted a bid in January 2018 to acquire GKN plc, the UK-based engineering group engaged in the provision of services to automotive and aerospace industries, (EV: €9,890m). After a bidding contest with Dana Incorporated, the US-based designer and manufacturer of cars, automotive components and technologies, more than 50% of GKN investors accepted Melrose’s offer on March 29th.
- Shiloh Industries Inc., US-based company engaged in designing, engineering, manufacturing and supplying welded and stamped components and modular systems for the automotive and heavy truck industries, acquired two plants in Italy and the Netherlands from Brabant Alucast International B.V., the Netherlands-based company engaged in manufacturing high pressure die cast aluminium and magnesium components.
- Advent International Corporation, US-based venture capital and private equity firm, acquired Laird plc, a UK-based company engaged in the design, manufacture and supply of electronic products and services.