Glass takeover will enhance ‘world class’ position

Manufacturing News, Source : TheManufacturer.com
Published : 27 Feb 2006 12:50
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Speculation on the future of Britain’s most famous glass-maker ended today with a £2.2 billion Japanese takeover.

Nippon Sheet Glass and Pilkington said the cash acquisition at 165 pence for each Pilkington share, valuing the Merseyside-based group at £2.2 billion, was a “strategically compelling combination to create global glass leader with combined sales of approximately £3.7 billion.

Stuart Chambers, Pilkington's chief executive, along with the rest of Pilkington's senior management team, will remain with the combined group with Chambers expected to lead the integration process for the combined glass activities.

Commenting on the acquisition, Yozo Izuhara, chairman and CEO of NSG, said the deal was “transformational” for the glass industry. “The combination of NSG and Pilkington will create a single global player with market leading positions across both developed and emerging markets. Our historical relationship and cultural fit will allow us to work closely with the management and employees of Pilkington to realise the considerable potential that exists to grow our combined business and to serve our global customers even better," he said

Pilkington’s Stuart Chambers said: "Over the past nine years Pilkington has significantly improved its cost structure to become leaner and more profitable. Recently Pilkington has moved to the third stage of its strategy, focusing on investments in the growing emerging markets of Russia, China, India and the Middle East. The combination with NSG will expand our geographic reach and enhance Pilkington's position as a global ‘world class’ glass manufacturer."

Pilkington employs some 24,000 people, 4000 of them in the UK which will remain at the centre of its European operations.

 

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