GKN completes Volvo deal

FTSE 100 engineering firm GKN said it had completed the acquisition of Volvo Aero, the aero engine division of AB Volvo.

Volvo Aero designs, engineers and manufactures components and sub-assemblies for aircraft engine turbines. The acquisition was announced back in early July.

GKN said the combination of its aerospace division and Volvo Aero would create a world leader in both aero structures and aero engine components.

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GKN paid around £633m for the firm with the aid of a £140m placing back in July of new shares at 200p each with institutional investors.

The rest of the money came from new debt facilities.

The placing represented about 5% of the firm's market capitalisation based on its July 4th 2012 closing share price.