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Turnround specialist Melrose to spin off auto business in GKN break-up

Melrose Industries plans to spin off the GKN automotive division as a new UK-listed company as it breaks up one of Britain’s oldest engineering businesses.

The FTSE 100 turnround specialist, which acquired the car parts and aerospace components manufacturer in a bitter £8bn takeover in 2018, is expected to confirm the move on Thursday.

Under the plan, Melrose will separate GKN’s automotive and smaller powder metallurgy businesses from its aerospace arm through a demerger of shares, according to people familiar with the situation.

The automotive company, one of the world’s leading suppliers of vehicle driveshafts, will aim to trade on the London Stock Exchange next year under a yet-undecided name.

Melrose will retain ownership of GKN Aerospace, a leading “tier one” supplier of airframe structures and engine components for aerospace and defence companies including Airbus and Rolls-Royce.

The move will give the automotive…

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