Tread carefully: Michelin announced the deal after markets closed
Michelin last night swooped on British manufacturer Fenner with a £1.2bn takeover bid.
The French tyre-maker announced the deal after markets closed, offering 610p per share. Fenner’s shares had closed at 490.6p, after climbing 5.1 per cent, or 24p.
Its proposal has been backed by Fenner’s board, with both firms saying it could lead to £30m in annual cost savings. Fenner, based in East Yorkshire and founded near Hull in 1861 by Joseph Henry Fenner, makes conveyor belts and reinforced products for the mining and industrial sectors.
Michelin boss Jean-Dominique Senard said: ‘Mastering high-technology materials is key to creating value in the coming years. The acquisition will enable Michelin to accelerate its growth in this area, and to strengthen its position as a key player in the recovering mining markets with a comprehensive offering.’
Fenner’s directors thought the offer was fair and reasonable and unanimously recommend the deal to shareholders.
Mark Abrahams, chief executive, said: ‘We find the cultural fit and business opportunities excellent with Michelin. Both companies have innovation in their DNA.’
Vanda Murray, chairman, said although the firm was confident its strategy would deliver ‘significant value for shareholders as an independent company’, they also believed ‘the terms of the acquisition acknowledge the quality of Fenner’s businesses and the strength of its future prospects’.