British security firm Securicor agreed a takeover deal with Danish rival Group 4 Falck today to create a combined company with turnover of £3.8 billion sterling (€5.6 million).
"The merger of Group 4 Falck's security businesses and Securicor will create a focused global leader in security services," Group 4 Falck said in a statement.
The new company, which has identified cost synergies of £35 million a year from the deal, increases pressure on the world's biggest security firm, Sweden's Securitas.
It will have its headquarters in Britain but will be 57.5 per cent owned by Group 4 Falck shareholders with Securicor shareholders owned the other 42.5 per cent.
Mr Lars Noerby Johansen, the current chief executive of the Danish firm, will take up the reins at the enlarged group.
Shares in Securicor were up 10.2 per cent to 130 pence after the details of the deal were unveiled while those of Group 4 Falck were 5.6 per cent higher at 161 crowns.
Group 4 Falck said that its safety and rescue and global solutions businesses would be demerged and that the deal was expected to be completed in the third quarter of this year.
The new group had pro forma earnings before interest, tax and amortisation before exceptionals of £189 million in the year to September 30th, 2003.