Arconic Inc, which supplied Grenfell Tower’s notorious cladding, is no longer selling the entire firm.
The US manufacturer – whose other businesses include aerospace, automotive, and energy – was previously cited as being in talks with Apollo Global Management for the deal. Now Arconic, without naming the private equity company, has released an update saying that it has decided not to pursue the potential sale.
Part of Apollo’s reported offer would have supposedly covered liabilities linked to the 2017 Grenfell Tower blaze – the insurance bill for which was touted at the time as possibly the largest ever in Europe.
“Together with management, we have been conducting a rigorous and comprehensive strategy and portfolio review over the past year and as part of that process considered a sale of the company, among other matters,” said Arconic chair John C. Plant in a statement.
“However, we did not receive a proposal for a full-company transaction that we believe would be in the best interests of Arconic’s shareholders and other stakeholders.”
While the whole enterprise is not being sold anymore, its construction unit – the one at the centre of the London tragedy – will still be up for grabs.
“We will continue with the previously announced sale process for our building and construction systems business,” stated Plant.
“More broadly, we remain strongly focussed on creating value for Arconic shareholders, through continued operational improvements and through other potential initiatives which we have identified in our strategic review.”
Meanwhile a Bloomberg report said Arconic shares fell as much as 21% following the announcement.
