American Axle seeks London listing as it progresses Dowlais takeover

(Sharecast News) - American Axle & Manufacturing will seek a secondary listing on the London Stock Exchange, it emerged on Friday, as it moves forward with its $1.4bn acquisition of Dowlais Group, the UK-based owner of GKN Automotive. The Detroit-based driveline systems supplier, already listed on the New York Stock Exchange, said the move would broaden access to the combined group's shares, allowing existing Dowlais shareholders and new investors in the UK to participate in the merged entity's future growth.

The cash-and-stock transaction, announced in January, valued Dowlais at £1.16bn and was expected to generate at least $300m in annual cost synergies within three years of completion.

American Axle said the integration process was progressing well, with regulatory filings advancing and US antitrust approval already secured.

The company emphasised that the combination would enhance scale and resilience amid a volatile automotive landscape, shaped by fluctuating electric vehicle demand, economic headwinds, and heightened competition from Chinese manufacturers.

American Axle also pointed to recent geopolitical developments, including a 25% US tariff on imported vehicles and a two-year window for increased domestic sourcing, as further strengthening the strategic rationale for the merger.

The secondary listing was not a condition of the deal, but both companies had amended their co-operation agreement to align the process with the planned combination timeline.

At 1043 BST, shares in Dowlais Group were down 1.25% at 66.41p.

Reporting by Josh White for Sharecast.com.