Rotork rockets as takeover lifts UK engineering sector - overseas buyers strike again

Rotork PLC's (LSE:ROR) agreement to a £4.1 billion takeover by Switzerland's ABB sparked a rally across the FTSE industrial engineering sector, adding to evidence that overseas buyers continue to target UK manufacturers. Shares in the FTSE 250-listed flow control specialist surged 67% to 486p after ABB agreed to pay 503p a share in cash, with shareholders also eligible to receive an interim dividend of up to 3p. The recommended offer represents a 73% premium to Wednesday's closing price for the Bath-based company. The bid lifted sentiment across the sector. Diploma PLC (LSE:DPLM) rose over 5%, while RS Group PLC (LSE:RS1) gained 2.2%. Weir Group PLC (LSE:WEIR) and discoverIE Group PLC (LSE:DSCV) climbed 4%, with IMI PLC (LSE:IMI) , Spirax Group PLC (LSE:SPX) and Smiths Group (LSE:SMIN) also among the strongest FTSE 350 performers. Another London-listed industrial business also received a takeover offer on Thursday: AIM-listed Gooch & Housego, which makes precision optics for aerospace, defence and life sciences customers, recommended a cash offer from US private equity firm Arlington Capital Partners worth 1,230p a share . Including its interim dividend, shareholders will receive 1,234.9p a share, a 41% premium to Wednesday's closing price. The deals add to a string of recent takeovers of UK industrial names, including Spectris , Dowlais, Renold , DS Smith , TI Fluid Systems . City figures have warned that Britain is " selling the family silver ", noting there had been 154 takeover bids for UK companies worth more than £100 million since the start of 2023, with a com...