Spectris abandons Oxford Instrument takeover bid amid Ukraine conflict volatilty
UK precision equipment manufacturer Spectris announced it had abandoned its takeover bid for microscope-maker Oxford Instruments today, citing the market volatility sparked by Russia’s invasion of Ukraine.
Shares in Oxford Instruments plunged over 21 per cent following the announcement that Spectris had stepped back from the deal.
Bosses at Spectris said there was still a “highly compelling” rationale for pursuing an acquisition but pushing ahead would not be in its investors’ best interests amid the volatility in the market.
“With the invasion of Ukraine, the world has changed since our proposed offer was made regarding a combination of our businesses, bringing a high degree of uncertainty to the economic outlook around the world” he said.
“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.”
The withdrawal makes the deal one of the first to be disrupted by the war in Ukraine, with fears growing that the volatility in the market could dampen deal activity in the coming months.
Data from Refinitiv last week found that dealmaking fell 35 per cent in February compared to the previous year, while cross border acquisitions of European firms also plunged 26 per cent compared to February last year, the lowest monthly total in ten months.
Lucille Jones analyst at Refinitiv Deals Intelligence, said: “We did see the pace of deal making slow in February, cooled by volatile stock markets, high inflation, and impending interest rate hikes.”