Last checked at 
(Alliance News) - Spectris PLC said on Monday it has ended discussions for a proposed GBP1.8 billion takeover of Oxford Instruments PLC, due to market uncertainty following Russia's invasion of Ukraine.
A takeover proposal from FTSE 250-listed precision instruments supplier Spectris had been confirmed by fellow London midcap Oxford Instruments last week Monday, with a deadline of March 28 for a firm offer or withdrawal.
However, Spetris now said that in light of the "significant uncertainty in global economic conditions" as a result of the war in Ukraine, the potential takeover is no longer in the interests of its shareholders.
Discussions between the parties have now been terminated.
According to scientific tool maker Oxford Instruments, the proposed offer had valued its shares at GBP31.00 each. Oxford shareholders would have received GBP19.50 in cash plus GBP11.50 in new Spectris shares for each Oxford share.
Oxford Instruments shares fell 25% to 1,700.00 pence each in London on Monday morning. It has a market capitalisation of GBP983.6 million.
"Oxford Instruments is a quality company and the strategic and financial rationale for a combination of our businesses is highly compelling...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," said Spectris Chief Executive Andrew Heath.
Spectris shares were down 1.3% to 2,425.00 pence each.
Having previously been "minded" to recommend the offer, Oxford Instruments noted the announcement and said: "The proposal was unsolicited and the board continues to believe that Oxford has a clear and compelling strategy to achieve growth and create value for shareholders over the medium-term."
By Elizabeth Winter; elizabethwinter@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
