American Axle & Manufacturing (AAM) Holdings and UK-based Dowlais have confirmed that the European Commission (EC) has granted unconditional clearance for their proposed merger.
Earlier this year, AAM agreed to buy Dowlais in a cash-and-stock transaction valued at about $1.44bn.
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The combination is intended to form a larger global driveline and metal‑forming supplier with a product set for internal combustion engine (ICE), hybrid, and electric vehicles (EV).
Under the deal terms, Dowlais shareholders will receive 0.0863 new AAM common shares, 42 pence in cash per share, and up to 2.8 pence of Dowlais’ FY24 final dividend for each Dowlais share prior to the closing of the deal.
Post-transaction, AAM shareholders are expected to hold a 51% stake in the combined entity, with Dowlais shareholders owning the remaining 49%.
With the EC’s approval, the merger has now met the European Union (EU) antitrust condition.
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By GlobalDataAntitrust clearances have been obtained in seven of the ten jurisdictions where filings were required: the US, India, the UK, South Korea, Taiwan, Turkey and the EU.
Remaining approvals are awaited in Brazil, Mexico and China.
AAM and Dowlais expect Brazilian clearance in early November 2025, following a positive opinion from the Conselho Administrativo de Defesa Econômica general superintendent issued on 17 October 2025 and published on 21 October 2025.
Mexican approval is anticipated in the fourth quarter of 2025.
The companies are in talks with the State Administration for Market Regulation in China and expect to secure approval toward the end of 2025 or in early 2026.
Given the present timeline, the parties anticipate completing the deal in the first quarter of 2026.
AAM stated in the scheme document that it had planned to invite Dowlais chief financial officer Roberto Fioroni to join the senior executive management team of the combined group.
It also intended to offer roles on that team to GKN Automotive chief executive Markus Bannert and GKN Powder Metallurgy chief executive Jean‑Marc Durbuis.
