CVC Withdraws Bid, Veritas Moves Forward With $2.5 Billion Bodycote Takeover
Private Equity Battle for Bodycote: Key Developments
Sept 28 (Reuters) - Private equity firm CVC Advisers said on Monday it does not plan to make an offer for Bodycote, abandoning its pursuit of the British thermal processing services group.
The decision clears the way for US-based private equity firm Veritas Capital, which won Bodycote's backing earlier this month for its £1.85 billion ($2.45 billion) takeover offer, including debt.
Background and Bidding Timeline
Here are a few details:
Competing Bids and Previous Interest
• CVC and Veritas had been vying for the British firm, submitting near-identical proposals in August, just two months after U.S. investment firm Apollo retreated from its £1.52 billion approach for Bodycote.
Veritas Sweetens Its Offer
• Earlier this month, Veritas pulled ahead by sweetening its bid to 940 pence a share, prompting CVC to say it would evaluate its options regarding the deal.
About Bodycote and Market Trends
Bodycote’s Business Focus
• Bodycote offers heat-treatment and metal-processing services to the aerospace, defence, automotive and energy sectors.
Foreign Interest in UK-Listed Firms
• The interest in the company reflected a wider trend of foreign buyers, particularly private equity firms, targeting UK-listed companies, which are argued to be undervalued.
Exchange Rate Information
($1 = 0.7557 pounds)
Reporting Credits
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sherry Jacob-Phillips)
