BIG COMBINE.

Press, Volume LV, Issue 15469, 12 March 1919, Page 4

BIG COMBINE.

BRITISH EXPLOSIVE COMPANIES TO AMALGAMATE. After negotiations extending over a period of eighteen months, a s'chemo has " now been devised, and is submitted for the consideration of shareholders, for a great amalgamation of explosive manufacturers in Great Britain. The reasons put forward for this consolidation of interests arc that the explosives and allied trades shall be able to effectively deal with the problems which must arise when the war is finally concluded. Such ca amalgamation as is proposed will eu- < abie tfie various technical, commer- ! cial. and financial problems to be more Salisfactorilf handled, and essential i improvements in working conditions and economics in manufacture and distribution to be introduced. Foreign manufacturer's of explosives and kindred commodities have already , formed themselves into poweiful combinations, and British interests must be similarly consolidated if they are to maintain their position in the lutuie. J The companies—many of them of a private character—have, of course, made huge profits out of the war, but thev must now adapt themselves to ! the' production of the manufactures I of peace and reconstruction. Naturally, I S ome of them tare better than others jin the terms upon which they will ! ] enter the now combine, and it will be j > interesting to note how the prices ot j their shares are affected when the conditions have been fully digested. The new combine will be known as j Explosives Trades, Limited, and its. authorised capital will bo £15,000,000, : consisting of £6,-300,000 G per cent, j cumulative preference shares. £8.000,- ; 000 ordinary shares, £1.500,000 of j deferred shares, and £2.000,000 ot j shares the character of which is to be decided upon at a later date. All the shares will be of £1 each. If the -whole of the shareholders in the companies included in the combine agree to exchange their holdings for the securities oi' the new company, it will have an issued capital of £15,247,438, made up as to £6,232,443 in preference £7,584,194 in ordinary, and £1,430.821 in deferred shares. No fewer than 29 companies are included in the arraugement.