Apollo Ends Pursuit of Bodycote, Withdraws £1.52 Billion Takeover Proposal

Apollo Global Management has decided not to proceed with a formal takeover offer for UK-based thermal processing services provider Bodycote, bringing an end to discussions surrounding a potential £1.52 billion acquisition.

The U.S. alternative asset management firm confirmed on Friday that it would not make a firm bid for Bodycote after previously submitting a conditional all-cash proposal. The offer, valued at 885 pence per share, represented a premium of nearly 27% compared to Bodycote’s share price before the proposal became public.

News of Apollo’s initial approach had driven Bodycote shares significantly higher, as investors anticipated a possible acquisition deal. However, the latest announcement has effectively ended the takeover discussions between the two companies.

Apollo did not provide a specific explanation for withdrawing its interest in the British engineering and thermal processing specialist. Under UK takeover regulations, the investment firm will now be restricted from making another approach to Bodycote for the next six months, except in certain limited circumstances permitted by the rules.

Despite stepping away from the transaction, Apollo expressed admiration for Bodycote’s leadership and operations. In its statement, the company said it continues to hold Bodycote and its management team in high regard and appreciated the discussions held with the company and its board of directors.

Bodycote is a leading provider of heat treatment and thermal processing services used across a range of industries, including aerospace, automotive, energy, and industrial manufacturing. The company has long been viewed as a strategic asset due to its specialized services and global footprint.

The decision marks the conclusion of months of takeover speculation surrounding Bodycote. While investors had hoped a formal acquisition bid would emerge, Apollo’s withdrawal removes the immediate prospect of a deal and leaves Bodycote focused on its independent growth strategy and long-term business objectives.