BTR Siebe to dominate automation
15 Jan 2000
As if to prove that it isn't only chemicals manufacturers who can strike deals, engineering conglomerates BTR and Siebe have announced that they are to merge, creating an automation company capable of competing with Germany's Siemens and the US's Emerson Electric. Although billed as a merger, the deal represents an effective takeover of BTR by Siebe.
BTR Siebe will control just over a tenth of the £66billion global market for control and automation. Annual sales should approach £8.7billion, with profits around £1.34billion. Overlapping of functions and cross-selling of each other's products will help the company cut some £250million from costs; however. some 5000 jobs will be wiped off the current 125,000-strong payroll.
The new company will have five divisions -intelligent automation, controls, power systems, industrial drives, and equipment and automotive. It will hold market-leading positions in all of these, the partners claim.
Allen Yurko, currently Siebe's chief executive, will keep the same job and title in the new company; Lord Marshall, Siebe's chairman, will also take the same role. BTR's chief executive, Ian Strachan, will serve as executive deputy chairman, but is tipped to leave the company once the businesses are integrated.
