Shares plunge in Aga Rangemaster as takeover imminent

American kitchen appliances company Whirlpool revealed after the close of UK trading on Friday that it would not be challenging Middleby for the British brand.

Shares had been as high as 210p each in anticipation of the bidding war, despite Middleby's offer being worth 185p each, as people expected Whirlpool's involvement to add another 50p to the opening offer price.

As the market opened yesterday, shares lost just over 12 per cent of their value, falling by 25.75p to 184.25p, and settled at around the same level for the rest of the day. A court hearing to officially sanction the deal will take place tomorrow, confirming that Middleby will take over Aga.

The end of Whirlpool's interest effectively hastens the move to place Aga in American ownership, as its new parent company is based in Illinois in the USA.

The Middleby deal is considered a good fit for Aga, with the company seemingly implying it plans to retain skills at its Coalbrookdale foundry and Ketley factory and the deal eliminating the company's £69 million pensions deficit.

Aga employs around 120 people at Coalbrookdale, and 300 more at its assembly plant in Ketley.