Melrose said it had received majority support from GKN shareholders for its final offer following a hostile takeover battle that has lasted for over two months and ignited a political debate over the tactics used by the turnaround specialist.

"We are delighted and grateful to have received support from GKN shareholders for our plan to create a UK industrial powerhouse," Melrose chairman Christopher Miller said in a statement.

"We are looking forward to working with GKN's talented workforce and to delivering for customers and all stakeholders... Let me assure you that GKN is entering into very good hands," he said.

Business Secretary Greg Clark has come under pressure to intervene in the deal amid concern expressed by MPs over asset stripping that could harm national security given GKN's defence industry role.

Clark has called for "binding" agreements over Melrose's proposal for the future of GKN.

GKN's management said that Melrose's offer undervalued the firm but conceded defeat.

"The board now recommends that, in the event that the offer is declared wholly unconditional by Melrose, shareholders accept the offer, as the GKN directors intend to do in respect of their own beneficial holdings," it said in a statement.

Melrose has already committed to keep GKN listed in London and headquartered in Britain as part of a five-year pledge.

- 'Bleak day' -

Politicians where GKN's Midlands headquarters is located demanded to know Melrose's plans.

"I'm asking the new owners for an early meeting to ensure their commitments to the West Midlands are honoured," said Andy Street, Mayor of the West Midlands.

"That means protecting current jobs, pensions and future investment in research and development. This will ensure GKN continues to be a long-term success story in the region."

Jack Dromey, a Labour MP in nearby Birmingham, called it "a bleak day for British industry.

"The takeover by Melrose makes a mockery of any talk by government of an industrial strategy," he said.

"Britain's takeover rules are in desperate need of reform. We have seen a jewel in the crown of British industry sold off because its shares were bought up by hedge funds."

GKN was instrumental in defence manufacturing during the First and Second World Wars and makes wing tips for planes made by European giant Airbus.

Union boss Steve Turner said he "will be holding Melrose's feet to the fire" in seeking guarantees on job security and investment.

"The takeover is far from a done deal though," he warned.

"With the UK defence secretary Gavin Williamson having expressed concern over the takeover's impact on UK defence interests, we continue to urge business secretary Greg Clark to use his powers under the Enterprise Act and call it in on national defence grounds," he added.

GKN shares shot up over 9 percent in late afternoon trading.