N-ice: Melrose shares jump a cool 13 per cent as it closes in on air conditioning deal

William Turvill
Follow William
Near-Record Heat Wave Grips U.S. East Coast, Midwest
Melrose agreed a reverse takeover deal for Nortek in July (Source: Getty)

Shares in Melrose Industries shot up a cool 13 per cent today – as the London-listed turnaround group closed in on completing its takeover deal for a US air conditioning company.

Melrose today announced that the “shop window period” on its deal for Nortek expired on 6 August without a superior offer being made.

Read more: Cold fusion: Turnaround group Melrose snaps up US aircon company for £2.2bn

The UK company said competition conditions have already been satisfied and the deal has shareholder approval. The transaction is expected to close on 31 August.

Melrose announced it had agreed a $2.8bn (£2.1bn) deal for the US heating and air conditioning company on 6 July.

In the year to 31 December, Nortek reported revenue of $2.5bn and a headline operating profit of $220.1m.

Read more: This is at least the second coolest UK deal agreed since the Brexit vote

The deal is classified as a reverse takeover because of the size of the target.

On Monday, after Melrose announced the deal was set to complete, its shares shot up more than 13 per cent (at the time of writing) to 777p.

8 August 2016 @ 2:30pmMelrose Industries (MRO)

Related articles