{"id":130158,"date":"2020-12-09T19:05:03","date_gmt":"2020-12-09T16:05:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/global-security-giant-g4s-backs-3-8bn-takeover\/"},"modified":"2020-12-09T19:05:03","modified_gmt":"2020-12-09T16:05:03","slug":"global-security-giant-g4s-backs-3-8bn-takeover","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/global-security-giant-g4s-backs-3-8bn-takeover\/","title":{"rendered":"#Global security giant G4S backs \u00a33.8bn takeover"},"content":{"rendered":"

“#Global security giant G4S backs \u00a33.8bn takeover<\/strong>”<\/p>\n

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\n G4S and Allied Universal would have a combined 750,000 employees worldwide and $18 billion in revenues if their merger goes ahead
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British security giant G4S, which guards sites including prisons, offices and COVID test-centres, has accepted a \u00a33.8-billion takeover from US rival Allied Universal, while rejecting Wednesday a slightly smaller offer from Canada’s GardaWorld.<\/p>\n

G4S’ board said it was “unanimously recommending” Allied’s improved offer, worth $5.1 billion or 4.2 billion euros, after concluding that 245 pence per share was “fair and reasonable”.<\/p>\n

Shares in G4S stood at 256 pence on Wednesday, suggesting a higher bid could still emerge from GardaWorld, which offered \u00a33.7 billion.<\/p>\n

The suitors had pledged to improve their target’s tarnished image, with G4S having been caught up in scandals across the world over recent years.<\/p>\n

‘Unrivalled coverage’<\/b><\/p>\n

“The combination of G4S and Allied Universal creates the global leader in security with over 750,000 employees, industry leading capabilities and unrivalled market coverage,” said G4S chief executive Ashley Almanza.<\/p>\n

He added that the enlarged group would have annual revenues of $18 billion.<\/p>\n

Allied CEO Steve Jones said the combination will put them “in a stronger position to deliver enhanced value for all stakeholders and address customers’ evolving security needs in an increasingly volatile and fast-changing world”.<\/p>\n

G4S attracted takeover attention after American security group Brink’s bought the majority of its cash-handling operations\u2014which physically transport notes on behalf of businesses\u2014leaving the British group to focus on its core activities.<\/p>\n

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\n The British army had to be called in when G4S failed to provide enough staff for the London Olympics in 2012
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In the UK, this includes providing security at four prisons, 21 test centres for COVID-19, and the under-construction Hinkley Point nuclear power plant.<\/p>\n

“We have been impressed by the recent transformation of G4S which alongside our successful acquisition track record, underpins our confidence of ensuring a seamless integration of the two businesses,” Jones added.<\/p>\n

G4S, which employs 533,000 staff across 85 countries, became a more attractive buying opportunity after its share price hit a 16-year low earlier this year on pandemic fallout.<\/p>\n

Additionally, “sale of its cash-handling operations in April left it as a pure play on security solutions, where it is a world leader”, said Russ Mould, analyst at stockbroker AJ Bell.
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Scandals<\/b><\/p>\n

G4S, which has a large presence in the US and Asia, traces its origins back to 1901 in Denmark and sees itself as a company that makes “a difference by helping people to live and work in safe and secure environments”, according to its website.<\/p>\n

But the group has been beset by high-profile scandals, most recently in July when it agreed to pay \u00a344.4 million for overcharging the UK government on electronic tagging contracts.<\/p>\n

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\n G4S security staff at the 2019 Wimbledon Championships
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Last year, the company’s involvement in the British immigration and asylum sector was ended after the BBC filmed staff allegedly abusing detainees at a centre in England. <\/p>\n

In 2018, the UK government took back control of security operations at Birmingham prison following riots. Inspectors had found conditions there to be “app<\/a>alling”.<\/p>\n

The government also had to intervene in 2012 by drafting in army personnel when G4S failed to provide enough staff to cover security for the London Olympics.<\/p>\n

Outside Britain, G4S in 2014 stopped providing security at an Israeli prison in the West Bank following pressure from human rights activists.<\/p>\n

The same year, it sold a subsidiary that provided services at the US military’s Guantanamo Bay prison in Cuba, again after allegations of possible mistreatment. <\/p>\n

It has nonetheless won other contracts there since.\n <\/p>\n\n

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French aerospace giant Thales acquires SIM maker Gemalto<\/a>\n <\/div>\n

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\n \u00a9 2020 AFP<\/p>\n

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Citation<\/strong>:
\n Global security giant G4S backs \u00a33.8bn takeover (2020, December 9)
\n retrieved 10 December 2020
\n from https:\/\/techxplore.com\/news<\/a>\/2020-12-global-giant-g4s-38bn-takeover.html<\/p>\n

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\n part may be reproduced without the written permission. The content is provided for information purposes only.<\/p><\/div>\n<\/p><\/div>\n