CVC drops Bodycote pursuit, clearing the path for Veritas Capital's £1.85bn takeover of UK thermal processing group
CVC Advisers confirmed on 28 September that it does not plan to make an offer for Bodycote (ticker: BOY.L), ending a bidding contest for the FTSE-listed British thermal processing services group. The withdrawal clears the way for Veritas Capital, a US-based private equity firm, whose £1.85 billion (approximately $2.45 billion, including debt) takeover offer had already secured Bodycote's board backing earlier in September. Veritas pulled ahead in the contest after sweetening its bid to 940 pence per share, a move that prompted CVC to announce it would evaluate its options before ultimately standing down. Bodycote provides heat-treatment and metal-processing services to the aerospace, defence, automotive and energy sectors, giving it a diversified industrial client base with significant exposure to long-cycle government and infrastructure spending. The deal reflects a broader pattern of foreign buyers, particularly private equity firms, targeting UK-listed companies that are perceived to be undervalued relative to their US or European peers. The combination of sterling's relative weakness and compressed UK equity valuations has made listed UK industrials an attractive hunting ground for dollar-denominated funds.
Why this matters
The Bodycote transaction exemplifies the sustained wave of take-private activity in UK public markets, with foreign private equity treating London-listed mid-cap industrials as a source of underpriced assets. CVC's withdrawal removes the competitive tension that had driven the bid price higher, meaning Veritas now faces a cleaner path to completion but must navigate UK regulatory clearance and shareholder approval without a rival in the room. For the broader market, the deal reinforces concerns about the hollowing-out of the London mid-cap listed sector, adding political pressure on the government and the FCA to address UK equity market attractiveness ahead of the October Budget.
On the Ground
Public M&A lawyers will be the primary beneficiaries here, advising on Takeover Code compliance, scheme or offer documentation, and shareholder engagement. Antitrust counsel will assess whether the combination raises any competition concerns across Bodycote's aerospace and defence supply chains. Corporate finance teams at investment banks on both sides will be coordinating fairness opinions and financing. A trainee on this matter would assist with drafting and proofreading the offer document or scheme circular, preparing Companies House filings, maintaining the conditions precedent checklist, and indexing the completion bible as the transaction moves toward formal close.
Interview prep
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“What are the key regulatory and procedural steps Veritas Capital must complete before the Bodycote takeover can close, and what risks remain now that CVC has withdrawn?”
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