Viyella Proposes £l00m Merger

Press, Volume CVIII, Issue 31599, 9 February 1968, Page 17

Viyella Proposes £l00m Merger

(N.Z. Press Association—Copyright;

LONDON, February 7. Proposals for a £loom merger between two of Britain’s largest textile concerns were announced in London today.

The surprise offer came from Viyella International, Ltd, a giant £s3m company, which is one of the biggest spinners in the British textile industry.

It wants to join forces with the English Sewing Cotton, Ltd, a £47m group, which manufactures natural and synthetic textiles. But Sir Cyril Harrison, ehairman of English Sewing, said this afternoon the proposal appeared to be “completely unacceptable.”

i He said it was still being , studied carefully. A formal i reply will be given this week.

The merger, if successful, would create the largest tex- , tile group in Britain to rival , the fast-expanding Ccirtaulds ■ combine. The merger would be carried out by forming a holding

company which would bid for the shares Of both firms. A Viyella spokesman said a fusion would yield many benefits for the British textile industry and could help cut imports and expand exports. Export Total The two companies export about £l3m worth of thread, fabrics and clothing a year—a small fraction of their total production. Most of Viyella’s exports go to Australia and North America. The announcement comes at a time when the British textile industry as a whole is shrinking in the face of overseas competition. Imports account for about 3C per cent of Britain’s domestic consumption.