British engineering firm Rotork has agreed to a £4.1 billion takeover by Swiss industrial group ABB, marking yet another foreign acquisition of a UK-listed company. The deal, which values Rotork at 506p per share, represents a significant premium and underscores the ongoing trend of overseas firms snapping up British businesses.
Details of the Acquisition
Zurich-based ABB announced it would pay 506p a share for Rotork, which is headquartered in Bath and specialises in manufacturing flow control equipment for the oil and gas industry. The offer price reflects a premium of approximately 30% over Rotork's closing share price before the announcement. The transaction is expected to close in the second half of 2025, subject to regulatory approvals and shareholder votes.
Morten Wierod, president and chief executive of ABB, said: “ABB has followed Rotork over many years, and we admire the execution excellence, engineering quality and customer trust that Rotork’s teams deliver each day. We are convinced of the compelling strategic fit of the transaction that will expand our automation offering.”
Impact on the London Market
The takeover adds to a growing list of UK companies being acquired by foreign rivals, dealing another blow to the London Stock Exchange. Recent takeovers include easyJet, Intertek, Tate & Lyle, and William Hill owner Evoke. Critics argue that undervalued UK stocks are making them attractive targets for overseas buyers, raising concerns about the competitiveness of the London market.
Integration and Job Prospects
ABB plans to run Rotork as a separate division within the wider group. While some job cuts are expected in overlapping back-office areas such as administrative and support functions, ABB said these are “not expected to be material.” The company added: “ABB does not intend to make any other headcount reductions that would be material.”
Dorothy Thompson, chairwoman of Rotork, commented: “The combination brings together two companies whose purposes are closely aligned, with a shared focus on automation and electrification to enable more sustainable and efficient operations.”
Strategic Rationale
The acquisition strengthens ABB's automation portfolio, particularly in the oil and gas sector, where Rotork's flow control equipment is widely used. Both companies have a strong emphasis on electrification and sustainability, which ABB believes will drive future growth. The deal is expected to generate cost synergies of around $200 million annually by the third year post-completion.
