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Investing.com-- American Axle & Manufacturing (NYSE:AXL) and UK-based Dowlais Group Plc (LON:DWL) are in advanced discussions to merge in a deal valued at over £1 billion ($1.24 billion), Bloomberg reported on Wednesday, citing sources familiar with the matter.
According to the report, the cash-and-share transaction could be announced as soon as this week. Shareholders of both American Axle and Dowlais are expected to hold roughly equal stakes in the combined entity.
If completed, the deal would mark the largest U.S.-to-UK transaction announced so far in 2025, Bloomberg noted. It comes as transatlantic dealmaking gains momentum following the reelection of U.S. President Donald Trump and UK Prime Minister Keir Starmer’s focus on economic growth and trade relations.
The negotiations remain fluid, and there is still a chance the deal could be delayed or abandoned, the report stated.
Detroit-based American Axle, a longtime supplier of drivetrain components, has faced growing pressure from the industry’s shift to electric vehicles.
Bloomberg noted that drivetrain suppliers, including American Axle, Dowlais, and Dana Inc (NYSE:DAN)., have explored consolidation as they seek scale and cost efficiencies in the transition away from combustion engines.