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Nuffield-Austin Merger : Duplication of Models

30th November 1951
Page 31
Page 31, 30th November 1951 — Nuffield-Austin Merger : Duplication of Models
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Keywords : Business / Finance

A LTHOUGH, according to an official rAstatement, "for some time past the boards of Morris Motors, Ltd., and the Austin Motor Co., Ltd., have had under consideration the desirability of amalgamating the two companies," the secret was extremely well guarded. Three years ago, the two organizations tried out an interworking arrangement, with the object of increasing standardization and making the best of joint factory resources, but it lasted for only nine months.

Unified control is expected to promote efficient and economic production, to further the export drive and be particularly beneficial to manufacture and assembly abroad.

No statement has been made, however, on the future of the respective companies individual models, although it is understood that they will retain their identities. In the goods-vehicle field, the Nuffield and Austin groups have been directly competitive in the 10-cwt., 25-cwt., 2-ton and 5-ton payload classes. Both offer petrol or oil engines in their 5-tonners, and make coach and ambulance chassis.

In addition, the Nuffield Organization builds 5-cwt. and 15-cwt. goods vehicles, and special 3-tonners and 5-tonners for export only.

The Austin concern markets batteryelectrics of 10-cwt. to 3-ton payload capacity. There is substantial duplication in the ranges of the two companies.

'the amalgamation is to he conducted by forming a holding company with an authorized capital of £5m. in 5s. ordinary shares. The first directors will be the Viscount Nuffield, chairman, Mr. I.. P. Lord, deputy chairman and managing director, Mr. R. F. Hanks (vicechairman, Morris Motors, Ltd.), and Mr. G. W. Harriman (deputy managing director, Austin Motor Co., Ltd.).

Holders of ordinary stocks and shares in the two manufacturing companies will be asked to exchange their existing 5s, ordinary stock units and shares for an equivalent number of 5s. ordinary shares in the holding company. Morris ordinary stockholders have 10.6m. units and Austin ordinary shareholders 7,955,437 units.

The Austin figure includes 883.937 ordinary shares of 5s. each which the company is to issue at 25s. per share. The combined undertaking will have assets amounting to nearly £66m. and will be the largest in the industry.


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