G4S Takeover Almost A Done Deal
- Security firm has already agreed to an offer from its USA rival Allied Universal Security Services
- Local competitions watchdog (CCA) confirms that it has received a merger notification from the two
Global security company G4S could soon be under new management after it agreed to an offer from one of its competitors, this publication has established. According to UK-based publication The Guardian, the security firm G4S has agreed to a £3.8 billon offer from its US rival, Allied Universal Security Services.
The Guardian reported that under the terms of the cash offer, G4S shareholders would receive 245p a share, which is an improvement on the 210p a share previously offered by Allied Universal but G4S said significantly undervalued the company.
“Allied Universal said that US regulators had already given the go-ahead for the merger to proceed,” TheGuardian reported late last year. Following the developments, local competition watchdog, the Competition and Consumer Authority (CCA), also announced that it had received a merger notification for the two leading security companies.
“Pursuant to section 49 (1) of the Competition Act 2018, the Competition and Consumer Authority has received a merger notification for the proposed acquisition of the sole control of G4S PLC by Allied Universal Topco LLC (through Allied UK Bidco Limited),” CCA announced recently.
The target company, G4S, is a global integrated security company offering a broad range of security services worldwide. The company trades primarily through its subsidiaries and joint ventures in numerous jurisdictions, including Botswana. In Botswana, G4S has three subsidiaries, namely BSE-listed G4S (Botswana) Ltd, which is for manned security and electronic security, Fidelity Cash Management Services (Botswana) (Pty) Ltd for cash solutions and G4S Facilities Management Botswana.
The acquiring enterprise Allied Universal, is jointly controlled by affiliates of Warburg Pincus LLC and Caisse de Dépôt et Placement du Québec. Warburg Pincus, is a company incorporated under the Laws of the State of New York, USA and CDPQ, was established by an act of the provincial legislative body of Québec, Canada. Warburg Pincus and CDPQ, through their controlled portfolio companies, control a number of firms globally, some of which have activities in Botswana.
Allied Universal is a security services and facilities management company which provides integrated security solutions incorporating manned guarding and security technologies, cleaning and maintenance services, as well as risk advisory and consulting services, among many other services.
If it moves forward, the acquisition will effectively cement Allied as, by far, the largest global security company with a staggering force of more than 750,000 employees globally. This is because Allied Universal has more than 250,000 employees worldwide serving clients across North America and in the UK whereas G4S is active in around 80 countries and has around 533,000 employees.