The London Stock Exchange is poised to bid farewell to yet another significant player as TI Fluid Systems agrees to a £1 billion takeover by Canadian rival ABC Technologies. The FTSE 250 engineer’s board has thrown its weight behind the 200p-per-share acquisition offer, marking a substantial 47.3 per cent premium on its mid-September trading price.
The deal amplifies the ongoing exodus from London’s markets, pushing the total value of departing companies beyond £52 billion this year, according to Peel Hunt’s analysis. TI Fluid Systems, which specialises in vehicle fluid-carrying systems, initially entered the market at 255p per share through a Bank Capital flotation in 2017.
ABC Technologies’ president and chief executive, Terry Campbell, has characterised the acquisition as a “transformative strategic opportunity” that promises enhanced value creation and growth potential. The announcement arrives amid a surge of recent takeover activity, with companies including TT Electronics, Aquis, Centamin, Renewi, Loungers and Direct Line all attracting bids.
Market analysts have noted that TI Fluid Systems faces potential revenue challenges due to issues with its largest US customer, Stellantis. The ABC Technologies offer may provide shareholders with a timely exit strategy. The company’s shares responded positively to the news, climbing 1.6 per cent to close at 192¼p.
Tim Cobbold, TI Fluid Systems’ chairman, emphasised the company’s market-leading position and praised its workforce, innovative products, and distinguished customer base. He expressed confidence that the offer delivers appropriate value to shareholders while accounting for broader industry uncertainties.
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