ADL future

[JoNi]

The Sunday Times reports that Chinese automotive giant Yutong is preparing a £200m takeover of the bus maker Alexander Dennis, one of Scotland's largest manufacturers. Senior executives of Shanghai-listed Yutong have held talks with Alexander Dennis, which is based in Falkirk and has about 2,000 employees. City sources said the discussions were at an early stage, and other bidders were circling. A last-minute offer from another Chinese company, BYD — which already has a tie-up with Alexander Dennis — has not been ruled out. Dennis was saved from collapse 12 years ago by a consortium of Scotland's best-known business people, including Stagecoach founders Sir Brian Souter and his sister Ann Gloag. The pair still control 55% of the business, according to Stagecoach's 2015 annual report. Alexander Dennis is also backed by the merchant bank Noble Grossart, which is controlled by Sir Angus Grossart and Sir Ewan Brown.
(Cut and pasted from a friend, I don't read the Sunday Times there aren't enough days in the week!)

[PM]

Would be a real shame if it were to be sold into foreign hands  :(

[D10]

I would hope that the Souters would reject any approach to buy their shares, certainly Brian Souter seems a proud scot, and would not be happy in the Chinese taking over.  >:(

[PM]

I would hope that the Souters would reject any approach to buy their shares, certainly Brian Souter seems a proud scot, and would not be happy in the Chinese taking over.  >:(

Fingers crossed, ADL will become an assembly plant for Chinese products, where all we're able to do is fit glass and nail badges on  >:(

[barry619]

I would hope that the Souters would reject any approach to buy their shares, certainly Brian Souter seems a proud scot, and would not be happy in the Chinese taking over.  >:(

He's also a businessman and will want his money back at some point.

If what the story says is true this is not the first time that Yutong has been sniffing around ADL because it looked at the deal last year. Yutong has also said in the trade press that it has a plan to become the largest producer of buses and coaches in the UK market within a certain number of years. While its coaches may have taken off well enough, for the Chinese to crack the bus market is a different thing entirely, and that would fit in with an acquisition. It would also put Yutong in a position of huge strength in the Hong Kong market, something the Chinese manufacturers are finding very difficult to crack because of the requirement for an 18-year vehicle life there.

£200m isn't likely to be enough, though.