MONTREAL — Quebec-based security firm Garda World has been outbid in its effort to acquire British competitor G4S by a U.S. company partially owned by the Caisse de depot et placement du Quebec.
The deal announced Tuesday calls for Allied Universal to offer 255 pence for each of the London-based company's shares in an offer valued at around C$6.7 billion. The directors of G4S intend to recommend that shareholders accept this offer.
The announcement comes as Montreal-based Garda World decided last week to increase its hostile bid by 24 per cent, to 235 pence per share, in a proposal valued at C$6.3 billion and presented as final.
In recent months, the board of directors of G4S had repeatedly rejected Garda's overtures in which it directly courted shareholders through a hostile offer.
Garda has not commented on the agreement between G4S and Allied and whether it plans to increase its own proposal.
The combination of G4S and Allied would have US$18 billion in annual revenues.
"The combination of G4S and Allied will result in the creation of a world leader in security with more than 750,000 employees and an unparalleled presence in the market," G4S chief executive Ashley Almanza said in a statement.
This report by The Canadian Press was first published Dec. 8, 2020.
The Canadian Press
