Melrose Industries PLC (LON:MRO), the turnaround specialist locked in a hostile-bid battle with engineering firm GKN PLC (LON:GKN), said on Monday it has received clearance from competition regulators in the United States and Canada for the £7.4bn deal.
In a brief statement, Melrose – which reports full-year results on Thursday– said the US Federal Trade Commission has granted early termination of the applicable waiting period under the Hart Scott Rodino Act, thereby providing clearance in respect of US anti-trust.
READ: GKN plans to return £2.5bn to shareholders in three years as it continues takeover fight
It added that, in Canada, the Competition Bureau has issued a no-action letter to Melrose noting that it does not intend to make an application under section 92 of the Competition Act, thereby confirming the completion of its review and effective clearance in respect of Canadian anti-trust.
Melrose will, however, still have to secure approval from the Committee on Foreign Investment in the United States due to GKN's role as a supplier of components to the U.S. and British militaries, a ruling that could take longer to come.
GKN – which issues it’s full-year results on Tuesday - has rejected Melrose's bid, describing it as "low price and high risk" but Melrose is keeping up the pressure.