China’s market regulator announced on January 16 2026 that it has approved American Axle & Manufacturing’s purchase of Dowlais Group, a key regulatory hurdle in a $1.4 billion cash‑and‑stock transaction that was first disclosed on January 29 2025.
The deal will give American Axle shareholders a 51% stake in the combined company and Dowlais shareholders a 49% stake. Management expects the merger to create a leading global driveline and metal‑forming supplier with a power‑train‑neutral product portfolio that serves internal‑combustion, hybrid and electric‑vehicle markets. The parties anticipate about $300 million in annual cost synergies within three years of closing, a figure that underscores the scale and integration benefits the combined entity will bring to its customers.
China’s approval is conditional. American Axle and Dowlais have committed to four undertakings: 1) to provide fair, reasonable and non‑discriminatory supply and development opportunities; 2) to continue performing existing contracts; 3) to maintain price stability; and 4) to avoid unreasonable refusal of renewal requests. The approval clears a major regulatory checkpoint, but the transaction still requires final shareholder and other regulatory approvals, and the parties have not yet closed the deal.
The transaction received EU approval in October 2025 and shareholder approvals in July 2025. A court hearing on January 30 2025 set the expected closing date to February 3 2025, a date that has been reiterated in subsequent updates. The timeline reflects the remaining steps before the parties can fully integrate the businesses and realize the projected synergies.
David C. Dauch, Chairman and CEO of American Axle, said the combination will create “a leading global driveline and metal‑forming supplier with size and scale to successfully navigate industry shifts and volatility.” He added that the deal offers “tremendous value‑creation opportunity” by combining two outstanding automotive suppliers, positioning the new entity to capitalize on the transition to electric vehicles and the expansion of Chinese EV makers.
Dowlais was spun off from Melrose Industries in 2023 and is listed on the London Stock Exchange. American Axle intends to seek a secondary listing on the LSE as part of the acquisition, which could broaden its capital base and enhance visibility among European investors.
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