AXL agrees with Dowlais for a proposed cash and share acquisition of Dowlais' entire issued and future ordinary share capital at approximately $1.44 billion.

The deal aims to create a “leading supplier of global driveline and metal-forming supplier” for the automotive industry.

Detroit-based American Axle and Manufacturing will buy GKN Automotive owner Dowlais in a cash-and-stock deal, valuing the London-listed firm at about 1.16 billion pounds ($1.44 billion), the companies said on Wednesday.