Apollo Global Management made a cash offer of 885 pence per share for FTSE 250 heat-treatment specialist Bodycote, valuing the deal at approximately £1.5 billion. This proposal, disclosed on a Friday, would have ended Bodycote's 52-year listing in London. The bid followed earlier approaches from Apollo and caused Bodycote's shares to jump 18.4%, pushing its market capitalization to about £1.4 billion.
However, Apollo Global Management later dropped its £1.5 billion bid for Bodycote. The companies announced on Friday, June 5, 2026, that talks over the £1.52 billion ($2 billion) takeover proposal had ended. Apollo stated it did not intend to make a firm offer, offering no specific reason but maintaining high regard for Bodycote and its management. This news caused Bodycote's shares to fall as much as 12%.
Under UK takeover rules, Apollo is now restricted from making another approach for Bodycote for six months, unless certain conditions are met, such as an approach supported by Bodycote's board. Bodycote, which provides heat treatment, metal joining, and protective coating services, expressed confidence in its strategy and growth prospects, maintaining its full-year 2026 guidance. Analysts noted that Apollo's interest validated their view that the market undervalues Bodycote's quality.
The withdrawn bid highlights a broader trend of private equity interest in UK-listed industrial companies, often seen as undervalued compared to global peers due to their stable cash flows. London's market has experienced several high-profile take-privates, raising concerns among regulators about capital market depth and suggesting more such offers are likely in the industrial and defense sectors as London's equity market shrinks.
