Australia's Brambles to merge with British company

Australian transport and logistics giant Brambles Industries Ltd. said today it will merge with British company GKN PLC, creating a business worth almost US$10 billion.

Brambles said the new company, to keep the name Brambles Industries, will have annual sales of more than US$3.6 billion.

Brambles, which rents pallets for transporting goods, will merge its assets with GKN’s share of the Chep pallet and Cleanaway joint ventures.

“Brambles and GKN have enjoyed a close commercial relation for nearly three decades,” Brambles Chairman Don Argus said.

Under the merger agreement, Brambles shareholders will have a 57% stake in the new company, and GKN shareholders will have a 43% share.

Argus and GKN Chief Executive C.K. Chow will head the enterprise, which will have its headquarters in Australia and be listed on both the London and Sydney stock exchanges