British vehicle component supplier TI Fluid Systems has agreed to be bought by Canadian rival ABC Technologies in a deal valuing the business at £1 billion.
It marks the latest loss for the London Stock Exchange amid a flurry of takeover deals and speculation this week.
ABC, which is owned by investment giant Apollo, offered 200p for each TI Fluid Systems share – representing a 53% premium to its closing share price on August 21, before ABC’s initial bid.
This values TI Fluid System’s entire share capital at about £1.04 billion, according to the businesses.
The Oxford-based company designs and makes thermal management products and fuel systems for vehicles including battery-electric, hybrid and internal combustion engine.
It supplies its products to carmakers around the world, including the US and Canada, Europe, China and India.
ABC, which also makes components for the global automotive industry, said buying TI Fluid Systems would help it grow internationally and offer an expanded range of products.
Tim Cobbold, the chairman of TI Fluid Systems, said: “The combination will result in a larger, more diversified business with a broader range of products and customers, better positioned to navigate the current challenges facing the automotive industry and deliver sustainable long-term growth.”
The deal marks the latest London-listed firm to be targeted for takeover.
On Thursday, cafe bar group Loungers said it had agreed to be bought by US investment group Fortress in a deal valuing it at £338 million.
The hospitality group operates the Lounge, Cosy Club and Brightside brands in regions across the UK.
Elsewhere, insurer Direct Line rejected an approach from Aviva for a possible cash-and-shares bid.
And fellow FTSE 250-listed firm Renewi said it had struck a £700 million deal to be taken over by Australian asset management firm Macquarie.
