Swiss engineering group ABB has agreed a £4.1bn takeover of UK-listed Rotork, with yet another UK firm set to leave the London Stock Exchange (LSE).

The recommended £5.06 per share offer comprises £5.03 in cash plus a permitted dividend of up to three pence per share, representing a 73% premium to Rotork's closing share price on 15 July and valuing the Bath-based engineering company at approximately £4.14bn.

ABB said Rotork, a leading manufacturer of intelligent flow control and electric actuator technology, would continue to operate as a separate division within its automation business.

The acquisition is expected to strengthen ABB's automation portfolio, expand its presence in higher-margin industrial markets and enhance its digital capabilities. ABB said the deal would immediately improve its operating margin and become earnings accretive in the second year after completion.

The company added that with its strong balance sheet "ABB has room for additional M&A and execution of its announced share buyback programme."

Rotork's board unanimously recommended the offer, stating it recognised the company's strong performance under its Growth+ strategy while providing shareholders with an attractive cash exit.

Rotork's jumped almost 67% after the ABB bid was announced.

But the takeover also represents another high-profile departure from the LSE, continuing the trend of overseas buyers acquiring established UK-listed companies amid concerns that British equities remain undervalued.

Morten Wierod, CEO of ABB, said: "We are convinced of the compelling strategic fit of the transaction that will expand our automation offering at the field device layer generating significant value for customers, employees, and shareholders of both companies. As part of ABB, Rotork is expected to accelerate its growth and value creation while preserving its entrepreneurial spirit and the customer proximity that makes this business so successful."

Dorothy Thompson, chair of Rotork, added: "The combination brings together two companies whose purposes are closely aligned, with a shared focus on automation and electrification to enable more sustainable and efficient operations. The Rotork Board believes that ABB's decentralised operating model and commitment to run Rotork as a separate division will benefit the Rotork Group's business, employees and wider stakeholders."

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