Key Takeaways
- • Apollo Global Management has withdrawn its £1.5bn conditional offer for Bodycote at £8.85 per share, announced in May 2026, marking a failed attempt to acquire the London-listed components manufacturer.
- • Bodycote shares fell 9% to approximately £7.40 in early trading following the announcement, erasing gains from the prior month when Apollo's interest was disclosed.
- • Apollo is now restricted under UK takeover rules from making another offer for Bodycote for six months, except under specific circumstances including board recommendation.
- • The withdrawal reflects broader private equity interest in undervalued UK-listed industrial companies, though Bodycote's resilient heat treatment and metal joining services could not overcome Apollo's deal decision.
- • Bodycote remains listed on the London market and the FTSE 250, maintaining independence after multiple acquisition proposals from Apollo over preceding months.
Summary
Apollo Global Management has abandoned its £1.5bn acquisition bid for Bodycote, a London-listed components and heat treatment services provider, according to a statement on Friday, June 5, 2026. The U.S. private equity firm withdrew its conditional offer of £8.85 per share, which had been announced in May 2026 following several prior acquisition proposals. The decision marks a setback for Apollo in its attempt to capitalize on valuations in the UK-listed industrial sector.
The withdrawal triggered an immediate market reaction, with Bodycote shares declining 9% in early trading to around £7.40 per share, reversing gains accumulated during the period of Apollo's interest. The company, which has been listed since 1972, confirmed the failed transaction and stated it had "strong confidence" in the company's potential and strategy going forward. Apollo indicated that it does "not intend to make a firm offer for Bodycote" and confirmed it is bound by UK takeover regulations prohibiting new offer announcements for six months unless the company's board provides a recommendation.
Bodycote operates across heat treatment, metal joining, and the application of protective metallic coatings for manufacturing clients, positioning it as an industrial components provider. The failed bid reflects private equity's sustained interest in acquiring UK-listed industrial and engineering businesses, viewed as resilient assets amid technology sector volatility and positioned at relatively attractive valuations. This transaction occurred amid broader sector activity, including Blackstone and Tinicum's £1.4bn acquisition of aerospace parts supplier Senior in April 2026, demonstrating continued buyout group focus on UK industrial assets.
The withdrawal triggered an immediate market reaction, with Bodycote shares declining 9% in early trading to around £7.40 per share, reversing gains accumulated during the period of Apollo's interest. The company, which has been listed since 1972, confirmed the failed transaction and stated it had "strong confidence" in the company's potential and strategy going forward. Apollo indicated that it does "not intend to make a firm offer for Bodycote" and confirmed it is bound by UK takeover regulations prohibiting new offer announcements for six months unless the company's board provides a recommendation.
Bodycote operates across heat treatment, metal joining, and the application of protective metallic coatings for manufacturing clients, positioning it as an industrial components provider. The failed bid reflects private equity's sustained interest in acquiring UK-listed industrial and engineering businesses, viewed as resilient assets amid technology sector volatility and positioned at relatively attractive valuations. This transaction occurred amid broader sector activity, including Blackstone and Tinicum's £1.4bn acquisition of aerospace parts supplier Senior in April 2026, demonstrating continued buyout group focus on UK industrial assets.
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