Chinese to buy Alexander Dennis Ltd?
A Chinese investor could acquire Alexander Dennis Ltd (ADL), according to recent press reports. These suggest that Chinese bus builders, Yutong and BYD, have both made approaches. The latter already has links with ADL, having entered into an agreement to collaborate to build 51 single decker electrics. The two companies have signed a joint venture agreement that envisages an initial contract between them to build 200 12m single deck buses a year.
At the time of going to press, the Falkirk based bus and coach manufacturer had neither confirmed or refuted the reports. In a statement, ADL said: ‘You may have seen the articles in the Sunday Times, the Times and other media which speculate on future company ownership. There is frequently a degree of interest from investors and trade buyers in companies like ADL, which have grown successfully at home and internationally. We remain committed to our long range strategy of strengthening ADL’s position at the forefront of the bus and coach industry in many global markets. We periodically undergo strategic reviews to identify options which will support us in achieving this objective. Whatever the outcome of any such exercise, our aim will always be to secure the long-term stability of the business and everyone associated with our success, including team members, customers and suppliers.’
In a short statement, BYD Europe stated that it ‘is aware of a speculative media story in the UK linking it to future possible ownership changes at ADL. BYD and ADL have a close working relationship on the basis of agreements the two companies reached in October 2015 under which they plan to jointly produce and sell pure electric buses. These agreements remain in place and BYD has nothing further to say on its relationship with ADL.’