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US company lined up to buy Chubb

Chubb, the London-listed company which counts the biggest electronic security group on the African continent among its subsidiaries, was likely to be sold to United Technologies, the maker of Carrier airconditioners and Otis elevators, it emerged last month. United Technologies expected to spend $1,5 billion on acquisitions this year and Chubb had a market value of $1,07 billion.

At the time of going to press, it had been reported that United Technologies might spend $1,6 billion on the purchase. Chubb is a well-known brand in South Africa. It is one of the four main security companies in South Africa, all of which are owned by foreign groups. Chubb's local operations, together with those in Ireland and the UK, contributed 30% of group sales for the year to December 2002. Major local clients include petrochemical refineries, major retail chains, Absa, Cell C and fire departments throughout the country. The local operations of Chubb include electronic security, which installs and services alarms and closed circuit television systems.

Meanwhile, Phil Fourie, the chief executive of Chubb Southern Africa has stated that there would be no job losses at Chubb's South African operations if the international security group is sold to US-based conglomerate.

Source: www.busrep.co.za

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