There are fears tonight (Thursday) that hundreds of Islanders will lose their jobs as a result of the successful £8.1 billion takeover of GKN by Melrose.
Previously, the Island’s MP Bob Seely has stated that in many cases Melrose aims to own businesses for only between 3 and 5 years, and during that time seeks to maximise shareholder value, selling on the parts of those businesses that it sees as underperforming.
This view of Melrose’s business activity has sparked great concern amongst the workforce of GKN at both the Osborne and Falcon Yard sites in East Cowes.
Although Melrose’s chairman Christopher Miller has said that GKN is in ‘very good hands’, Bob Seely says he is taking the statement with a massive pinch of salt.
The MP has stated that he wants to hear more on how Melrose intend to develop the businesses they have just bought, including the GKN plants on the Isle of Wight. Mr Seely says nothing he has heard so far reassures him.
Melrose’s Christopher Miller has today said in a statement:
“We are delighted and grateful to have received support from GKN shareholders for our plan to create a UK industrial powerhouse with a market capitalisation of over GBP10 billion and a tremendous future.
“We are looking forward to working with GKN’s talented workforce and to delivering for customers and all stakeholders. Melrose has made commitments as to investment in R&D, skills and people and we are very excited about putting these into action.
Article continues below this advertisement “Let me assure you that GKN is entering into very good hands”.
