The companies say that the new group will produce a substantial international business with the combination of Cleanaway in Europe (currently a joint venture) with the Brambles-owned Cleanaway Australia and Cleanaway Asia.
And, the pair say that the deal will lift current “territorial restrictions currently placed on Cleanaway” under existing joint venture agreements which will allow development into new areas.
The deal should also, says the respective boards, allow for more efficient investment decisions with a “more efficient corporate structure”.
Cleanaway will have four key growth strategies in its new combined business:
- – increase market penetration in the UK and Germany
- – continue the expansion of services in Asian and Europe
- – develop new recycling and secondary materials trading opportunities in Europe
- – integrate the ServiceTeam acquisition and further exploit opportunities created through the UK Waste Strategy 2000
Financial details of the agreement say that the estimated market value of the combined group, based on Brambles’ current market capitalisation, is approximately A$19.8 billion.
The nil-premium merger sees Brambles’ existing activities merged with GKN’s share of the CHEP and Cleanaway joint ventures, GKN’s wholly-owned business CHEP South Africa and its Interlake and Meineke operations.
GKN will separate its support services activities from its engineering operations and place them in a new UK company, Brambles Industries plc.
It is expected that Brambles Industries Limited and Brambles Industries plc will then be combined under a dual-listed companies structure.
The primary listings will be in Australia and the United Kingdom and the headquarters of the combined business will be in Sydney. The deal is subject to approval by regulatory authorities.
Subscribe for free