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Rival buys Black &Decker in an all-stock deal worth 2bn

POWER tool maker Black &amp; Decker was last night bought by rival Stanley Works in a $3.46bn (&pound;2.11bn) all-stock deal.<br /><br />The two tool makers said that a merger would mean the companies would benefit from higher margins and cost savings.<br /><br />Stanley shareholders will own about 50.5 per&nbsp; cent of the combined company, to be named Stanley Black &amp; Decker, and Black &amp; Decker shareholders will own about 49.5 per cent.<br /><br />Black &amp; Decker chief executive Nolan Archibald said: &ldquo;The driving motivation of the transaction is the present value of the $350m in annual cost synergies and the combined financial strength and product offerings of the merged companies.&rdquo;<br /><br />Black &amp; Decker shareholders will receive 1.275 Stanley shares for each Black &amp; Decker share they own, representing a premium of 22 per cent on Black &amp; Decker&rsquo;s closing price yesterday.<br /><br />Stanley chief executive John Lundgren said: &ldquo;This is a unique opportunity to bring together two great companies, each with first-rate brands.&rdquo; He added that job cuts from the merger would total less than 10 per cent of the combined workforce.