Melrose given US national security clearance for GKN takeover

Melrose Industries has been given clearance from the Committee on Foreign Investment in the United States for its takeover of defence contractor GKN.

CFIUS has concluded its review and has determined that, based on its investigation, there are no unresolved national security concerns.

Melrose's £8.1bn offer for GKN was declared unconditional on 19 April and the listing of GKN's shares from the London Stock Exchange was cancelled on 21 May.

"This is good news but not a surprise and is a tick in the box," said analyst Harry Philips at Peel Hunt. "The debate around this subject has been one of the many contentious aspects of the bid but as is so often the case, reality reigns the perceived breadth of subjectivity."

He added: "The stock is in a slight state of limbo ahead of the early September unveil of its detailed plans for GKN - we expect them to be 'Melrose pragmatic' but at the same time bold to underpin our belief that this deal could be the biggest return generator in Melrose's history."