The economic instability in the face of Russia’s war on Ukraine continued to spread after electronics giant Spectris (SXS) pulled the plug on its $2.4 billion acquisition of science equipment designer Oxford Instruments (OXIG).
‘Oxford Instruments is a quality company and the strategic and financial rationale for a combination of our businesses is highly compelling,’ said Spectris chief executive Andrew Heath, but not right now.
‘With the invasion of Ukraine, the world has changed since our proposed offer was made regarding a combination of our businesses, bringing a high degree of uncertainty to the economic outlook around the world,’ the Spectris boss said. ‘While we believe this combination is a great opportunity for both companies, the timing is no longer right and we have brought our discussions to a close.’
HIGH PRICE OF DEAL FAILURE
Shares in Oxford Instruments plunged more than 27% on the news to £16.56, slashing the company’s market value from nearly £1 billion to around £700 million.
The proposed offer, made on 28 February 2022, would have seen Oxford Instruments shareholders received £19.50 in cash and another £11.50 worth of shares in buying company Spectris.
Shares in Spectris rose more than 3% on the news to £25.38, putting its market capitalisation at £2.9 billion.
Responding to Spectris’ statement, Oxford Instruments said the proposed takeover was unsolicited and the board continues to believe ‘Oxford has a clear and compelling strategy to achieve growth and create value for shareholders over the medium-term.’
