Ukraine uncertainty ends prospect of Spectris and Oxford Instruments merger
A merger between high tech engineering giants, Spectris and Oxford Instruments, has been shelved due to uncertainty around the Ukraine war.
Spectris announced to the London Stock Exchange this morning that due to the uncertainty sparked by the Russian invasion in Ukraine it would not be in the interest of shareholders to pursue merger talks any further.
Surrey-based Spectris made a previous approach for Oxford Instruments earlier this year.
Oxford Instruments, headquartered in Abingdon, also announced that talks has ended and that it had a "clear and compelling strategy" to achieve growth.
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Andrew Heath, Chief Executive of Spectris, said: "Oxford Instruments is a quality company and the strategic and financial rationale for a combination of our businesses is highly compelling.
"However, 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.
"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 appalling events in Ukraine are extremely distressing. Though we have no businesses in Ukraine, we are doing everything we can to help colleagues whose families are impacted and support the relief effort for the people of Ukraine."
Spectris provides high-tech instruments, test equipment and software with Oxford Instruments operating in a similar sphere through its supply of high technology tools and systems for research and industry.
The merger would have created a new entity with a combined market capitalisation close to £4.6m with the lowest entry by market capitalisation in the FTSE 100, steel manufacturer Evraz Plc, currently sitting at early £3m meaning that it could be considered for admittance.
