BIG MARGARINE MERGER.

New Zealand Herald, Volume LXVI, Issue 20384, 12 October 1929, Page 11

BIG MARGARINE MERGER.

many millions involved.

COMPLICATED RELATIONSHIP.

[from our own correspondent.] LONDON. Sept. 6. New Zealand has a certain direct interest in the great margarine merger that has been announced, for all tho best margarine produced contains a percentage of New Zealand butter. On January 1 tho margarine combine will bo amalgamated with Lever Bros. A provisional agreement has been signed, whereby, for the purpose of securing complete co-operation between the two organisations in the working of their respective business, the ordinary share capital of Lever Bros, and the share capital of Margarine Union—with which is associated N. V. Margarine Union—will be amalgamated on the basis of equality of status. No alteration in the method of carrying on the business of either organisation is involved in the amalgamation. It is understood that the. capital of Margarine Union will be increased, while the voting rights of the shares concerned in the transaction are to be vested in a new company to be styled Union and Levers. In the present instance only the ordinary capital of Lever Bros, is involved. The total capital of the company, in addition to £7,500,000 in debentures, is £56,627,546, of which only £2,400,000 is in ordinary shares. These are held in the Leverhulme family.

The total share capital of Margarine Union is £3,600,000, comprised as to £1 000,000 in 7 per cent, cumulative preferred shares and £2,500,000 in ordinary shares. There are also £IOO,OOO in 6 per cent, deferred shares of Is each owned by N. V. Margarine Unie. The Unio Company docs not enter into this combine apparently, except that as owner of ,these deferred shares its approval will have been necessary. The relationship is complicated. Margarine Union, which controls Van den Berghs, is in its turn controlled by tho Unio Company. The N. V. Margarine Unie controls Anton Jurgens Vereonigde and N. V. Van den Borghs Fabrieken. Tho combine thus controls the greater part of the margarine industry of Europe and is interested in oil-crushing, oil-refining and hardening factories and allied industries. On the distributive side the combine is reputed to control the Home and Colonial, Maypole Dairy, Meadow Dairy and Liptons. The aggregate share capital of Lever Bros., Margarine Union and Unio Companies totals £68,750,000. In anticipation of somo such merger the share market has been buoyant for some time and last week these shares touched iccord levels. The £1 shares of Margarine Union rose to 127s 3d last week, while the 12-floriri Unie shares (equivalent to £1) touched 131s 6d a few days ago.