POWER tool maker Black & Decker was last night bought by rival Stanley Works in a $3.46bn (£2.11bn) all-stock deal.
The two tool makers said that a merger would mean the companies would benefit from higher margins and cost savings.
Stanley shareholders will own about 50.5 per cent of the combined company, to be named Stanley Black & Decker, and Black & Decker shareholders will own about 49.5 per cent.
Black & Decker chief executive Nolan Archibald said: “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.”
Black & Decker shareholders will receive 1.275 Stanley shares for each Black & Decker share they own, representing a premium of 22 per cent on Black & Decker’s closing price yesterday.
Stanley chief executive John Lundgren said: “This is a unique opportunity to bring together two great companies, each with first-rate brands.” He added that job cuts from the merger would total less than 10 per cent of the combined workforce.