ABB Acquires Rotork in £4.1 Billion Deal, Latest in Wave of UK Firm Takeovers
Swiss engineering giant ABB has agreed to buy UK-based Rotork for £4.1 billion, marking another significant acquisition of a London-listed company by foreign investors.
Rotork, a FTSE 250 engineering firm, has agreed to be acquired by Swiss rival ABB in a deal valued at £4.1 billion. The acquisition by the Zurich-based ABB, which employs over 100,000 people globally, underscores a recent trend of London-listed companies being purchased by foreign buyers.
ABB has offered 506 pence per share in cash for Rotork, representing a 73 percent premium over the latter's closing price on Wednesday. The offer includes 503 pence in cash and a dividend of up to 3 pence. Rotork, founded in Bristol in the 1940s and listed on the London Stock Exchange since 1968, is expected to operate as a distinct division within ABB's automation business.
Morten Wierod, CEO of ABB, stated that the company has observed Rotork for many years and respects its operational excellence, engineering quality, and customer relationships. He believes the acquisition is a strong strategic fit, enhancing ABB's automation capabilities at the field device level and creating value for all stakeholders.
Following the announcement, Rotork shares rose 66 percent to 485 pence in morning trading. The deal comes as other UK companies also face acquisition interest. Energy firm DCC has received an improved offer from KKR and Energy Capital Partners, while other UK entities targeted this year include Schroders, Beazley, Segro, and Easyjet.
Data from City broker Peel Hunt indicates that the value of UK-listed firms subject to bids in the first half of 2026 was 27 times greater than the value of new stock market listings. In light of these trends, the Association of Investment Companies has urged incoming Prime Minister Andy Burnham to consider eliminating stamp duty on share trading to support the stock market.