American Axle & Manufacturing plans to pursue a secondary listing on the London Stock Exchange as part of its proposed $1.4 billion merger with Dowlais Group PLC (LSE:DWL), the companies said on Friday.
Shares would be admitted to the equity shares (international commercial companies secondary listing) category of the Official List and trade on the LSE’s Main Market.
The move is intended to broaden access to the combined group’s equity and ensure UK investors can participate in the future value creation of the deal.
The secondary listing is not a condition of the combination, but both parties have amended their co-operation agreement to ensure the process progresses in parallel. AAM will now begin preparations for an FCA-approved prospectus.
The $300 million cost synergy target remains unchanged, with integration planning said to be progressing well. Regulatory approvals are advancing, with US antitrust clearance already received.
The boards of both companies reiterated their belief in the strategic rationale for the merger, which was announced in January and is intended to create a more resilient automotive supplier with broader global reach across customers, geographies and products.