CVC has abandoned its pursuit of UK engineering specialist Bodycote, clearing the way for US private equity firm Veritas Capital to complete its £1.65bn takeover of the firm.

CVC Advisers, the advisory and investment management business behind CVC Capital Partners, one of the world's largest private equity firms, said on Monday that it did not intend to make another offer for Macclesfield-based Bodycote, which agreed earlier this month to be acquired by Veritas for 940p a share, comprising 932.8p in cash and a 7.2p FY26 interim dividend.

CVC said in a statement to the market today: "CVC is grateful for the constructive engagement shown by the Bodycote Board and management team, and thanks them for the time they have devoted to considering this potential transaction."

The statement was made under Rule 2.8 of the UK takeover code, which generally prevents CVC from returning with another bid for six months unless certain circumstances apply.

The withdrawal effectively ends the bidding contest after CVC and Veritas initially made competing offers of about 915p and 914p a share respectively. Veritas subsequently increased its offer and secured the Bodycote board's support.

Bodycote, which provides heat treatment and specialist metallurgical technologies to industries including aerospace, defence, automotive and energy, saw its shares fall 29p, or 3.1%, to 917.5p on Monday afternoon as the withdrawal removed the prospect of a further bidding contest.

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