ABB set to swoop for Rotork in £4.1 billion deal

An industrial valves component maker is set to be bought in a £4.1 billion deal.

Engineering firm Rotork has agreed a takeover approach from Swiss operator ABB.

Zurich-based ABB says it will pay 506p a share for Bath-headquartered Rotork, which is known for making flow control equipment for the oil and gas industry.

ABB says it will run Rotork as a separate division within the wider group.

However, it has cautioned over potential job cuts across overlapping back office areas, but says these are “not expected to be material”.

Morten Wierod, ABB president and chief executive, said: “We admire the execution excellence, engineering quality and customer trust Rotork’s teams deliver each day.

“We are convinced of the compelling fit of the transaction that will expand our automation offering.”

Dorothy Thompson, chair of Rotork, which also operates a Leeds office, added: “The combination brings together two companies whose purposes are closely aligned, with a shared focus on automation and electrification to enable more sustainable and efficient operations.”

The takeover marks the latest foreign swoop on a UK-listed company, following moves for the likes of EasyJet, Intertek, Tate & Lyle and William Hill owner Evoke.

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