American Axle & Manufacturing (AAM) and Dowlais Group have secured Chinese antitrust clearance, completing regulatory approvals ahead of their planned February 2026 merger.
The companies said the decision from China’s State Administration for Market Regulation means all conditions tied to regulatory and competition approvals for the transaction have now been met.
The US automotive and mobility supplier struck the deal in January last year to acquire UK-based Dowlais Group in a cash-and-share transaction worth approximately $1.44bn.
Under the agreed structure, Dowlais shareholders will receive 0.0863 new AAM common shares and 42 pence in cash for each Dowlais share.
They will also receive up to 2.8 pence per share linked to Dowlais’ FY24 final dividend prior to closing.
After completion, AAM investors are expected to control 51% of the combined company, with Dowlais shareholders owning the remaining 49%.
Based on AAM’s closing share price on 28 January 2025, the transaction values Dowlais at 85.2 pence per share, representing a 25% premium to Dowlais’ closing share price on that date.
Dowlais Group is an automotive engineering and car parts maker operating across automotive technology and powder metallurgy.
Its businesses, GKN Automotive and GKN Powder Metallurgy, span 70+ facilities in 19 countries.
Commenting on the acquisition at the time of its announcement, Dowlais chair Simon Mackenzie Smith said: “The strategic rationale for the combination is clear: together, we create a global leader with enhanced financial strength, broader diversification and a market-leading product portfolio that spans traditional and electrified powertrain solutions.”
The Chinese clearance follows unconditional approval granted earlier by the European Commission, satisfying the EU antitrust requirement.
Approvals have also been secured in the US, India, the UK, South Korea, Taiwan and Turkey, taking the total to seven of ten required jurisdictions.
The merger remains contingent on court approval of the scheme at a hearing scheduled for 30 January 2026.
“AAM and Dowlais win Chinese antitrust approval for $1.44bn merger” was originally created and published by Just Auto, a GlobalData owned brand.
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