‘Come clean now’

An inquiry into turnaround specialist Melrose’s predatory takeover of engineering firm GKN has finally been agreed following pressure from Unite.

The business, energy and industrial strategy committee will convene on March 6 to hear evidence from Melrose, GKN and Unite representatives.

Committee chair and Labour MP Rachel Reeves said the meeting will be “an opportunity to hear from Unite and for both GKN and Melrose to set out their case for the future of the business and how they are going to deliver long-term success for the company, shareholders, workers and pension holders.”

MPs will also consider whether the takeover bid should be blocked on national security grounds.

Unite, in its campaign against the takeover, has argued that given GKN is a major player in military aerospace – it, for example, provides parts for the F-35 fighter jet – any takeover by an equity firm only interested in rewarding its shareholders at the expense of the company’s long-term health would threaten the UK’s national security.

And as Unite has highlighted before, there are already laws on the books under the Enterprise Act 2002 for the government to block the bid on national security grounds in the public interest.

Tory donors

Still, the government’s reluctance to step in may be explained by the Tory party’s vested interests in the takeover, a Mirror report points out.

The paper revealed today (February 22) that two Melrose executives had both donated tens of thousands of pounds to the Tory Party over the years. Executive vice chairman David Roper has donated ÂŁ131,375 to the Tories over the last four years, while executive chairman Christopher Miller donated ÂŁ40,492 to the party in the last decade.

Unite general secretary Len McCluskey called on prime minister Theresa May to “come clean now.”

“There are clear national security interests at stake here,” he said. “Should an acquisitions company which is driven to return a fast profit to its shareholders be entrusted with the safe upkeep of our defence? Indeed, can they be trusted with the future of at least 6000 workers, their pensions or communities.

“In light of the Mirror’s report that Melrose bosses are also significant donors to the Tory party, it is also important that the prime minister stays true to her promise to act on the national interest on this takeover.  That means intervening to stop a great British manufacturer from falling into the wrong hands.

‘So prime minister, tell us the truth,” McCluskey demanded. “Where do your obligations lie?  To a party propped up by a handful of super-rich donors, or to the honourable workers and businesses of this country?’