Dowlais agrees £1.16bn takeover by American Axle

(Sharecast News) - Specialist UK auto parts engineer Dowlais said it agreed terms on a £1.16bn cash and share takeover by American Axle & Manufacturing. AAM is offering 0.0863 new AAM shares plus 542p a share in cash and a further 2.8 pence in the form of a final cash dividend to be paid on completion.

Both companies said they had identified $300m in "cost synergies" across the combined group, but did not specify how many jobs could potentially be lost.

Immediately following completion, it is expected that Dowlais shareholders will own approximately 49% of the new group and AAM Shareholders 51%.

Reporting by Frank Prenesti for Sharecast.com