Apollo Global Management and British thermal processing services group Bodycote have ceased discussions regarding a proposed £1.52 billion ($2 billion) takeover, the companies announced on Friday. The news sent shares of London-listed Bodycote plummeting by as much as 12%, marking the largest decline on the FTSE 250 index for the day. This development follows a conditional all-cash bid submitted by the U.S.-based alternative asset manager two weeks prior, which had previously caused Bodycote’s shares to surge.
Bodycote specialises in providing heat treatment and other metal processing services designed to enhance the performance and durability of metal components. These crucial services cater to a range of industrial sectors, including aerospace, defence, automotive, and energy. The original offer of 885 pence per share represented a substantial premium of nearly 27% compared to Bodycote’s closing price before the bid’s disclosure, attracting significant market attention following several previous approaches.
Apollo stated on Friday that it did not intend to make a firm offer for Bodycote, providing no specific reason for its decision. Under British takeover regulations, Apollo is now restricted from making any further approach for Bodycote for a period of six months, except under certain defined conditions. Bodycote, for its part, confirmed it was no longer in an offer period and expressed strong confidence in its current strategy and potential to build a “high-performing, resilient business with attractive growth prospects.” The company had last week reiterated its full-year 2026 guidance, while acknowledging ongoing geopolitical uncertainty and its commitment to managing costs tightly. Despite the day’s losses, Bodycote shares remain up approximately 9% for the year.
