Industrial conglomerate Melrose Industries PLC (LON:MRO) shares jumped 10% as no other bids came in for US firm Nortek Inc (NASDAQ:NTK) during a ‘shopping window’ period.
The UK firm announced it would buy the Nasdaq-listed control and air conditioning specialist for US$1.4bn at the start of July and now expects to complete the deal by the end of the month.
Nortek's brands include legendary names such as Frigidaire, Kelvinator and Panamax. Some 90% of its turnover is in North America with 80% of US households having one of its products.
Melrose, which owns power generation business Brush Turbogenerators at Loughborough, specialises in the restructure of mature businesses before selling them.
The deal will be funded by a right issue on a 12-for-1 basis at 95p to raise £1.6bn.
Since the deal was announced, Melrose’s share price has almost doubled as the market has welcomed the plans to invest in ‘manufacturing facilities, product innovation, potential further complementary acquisitions, supply chain efficiencies and measures to drive market penetration’.
Melrose shares rose by a further 14% today to 782p.
Nortek will cancel its Nasdaq listing once the deal completes.