Megamerger in United States

Stanley Works, a United States manufacturer of hand tools, is acquiring Black & Decker, the world’s biggest power tool group of companies. A figure of US $ 4.5 bn is being put on the deal, which is officially termed a merger. The companies expect this move to result in annual savings to the tune of US $ 350 mio and the consolidation of their market position. The acquisition is expected to be completed in the first half of 2010. After three failed attempts to bring about a link-up of these two old-established groups, the present agreement has been reached under pressure from the economic and financial crisis.