NSG to acquire Pilkington
25 April 2008
Japan: The Board of UK-based glass manufacturer Pilkington has recommended that shareholders accept a UK£ 1.65 (US$ 2.87) per share cash offer for the company from Nippon Sheet Glass (NSG). The Japanese company already owns a 19.7% stake in Pilkington.
The deal, which comes after months of rumours and rejected bids, is worth UK£ 2.2 billion (US$ 3.83 billion). The two companies say that, when complete, the merger will create the world's largest glass manufacturer, with annual sales of UK£ 3.7 billion (US$ 6.44 billion).
Both companies are major suppliers to the construction industry, with 49% of Pilkington's revenues and 65% of NSG's attributed to the flat glass market. On that basis, 55%, or UK£ 2.02 billion (US$ 3.51 billion) of the combined group's sales would be to the construction industry. This would make NSG leader in the flat glass sector following the merger, with an estimated 14% share of the world market.