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Kenneth Ko

Jones Lang Wootton (JLW) is to merge with New York-listed LaSalle Partners to create a global real-estate services and management firm with a market value in excess of US$900 million.

 The merger will make the new company, Jones Lang LaSalle, one of the largest real-estate services players in the world, employing more than 6,000 people in 34 countries.

 It is the latest in a string of alliances between companies in the industry to take advantage of the global presence of multinational clients and businesses.

 LaSalle chairman Stuart Scott, who will become chairman and chief executive of the new company, said the merger would enable it to 'put in place the missing pieces of our global real-estate delivery system' and increase direct access to capital and markets worldwide.

 'We believe this combination will expand business-building opportunities in a manner which will enhance shareholder value,' he said.

 The merged group would have about $20.3 billion of assets under investment management, he said.

 The proposal calls for LaSalle to issue up to 14.3 million shares, plus about $6 million in cash, for the JLW stake.

 Based on LaSalle's closing share price of $30 on Wednesday, the deal was valued at $435 million.

 JLW's equity owners will sell their stake to LaSalle in exchange for 12.5 million LaSalle shares while LaSalle will issue another 1.8 million shares to JLW's non-owner employees.

 Jones Lang LaSalle will consider seeking an additional listing on the London Stock Exchange after completion of the merger.

 JLW chief executive Christopher Peacock, who will become president and deputy chief executive of the combined group, said JLW and LaSalle were 'ideally matched with complementary strengths' in geographic coverage, skills and product range.

 A statement said the merger would combine JLW's strengths in Europe and the Asia-Pacific region with LaSalle's depth in the North American market.

 Mr Scott said a minor rationalisation in the workforce was possible following the merger but there would be no redundancies in Asia, where JLW was strong.

 JLW has 900 to 1,000 employees in Asia and is a leading player in Hong Kong.

 The firm, headquartered in London and established in 1783, employs more than 4,000 staff in 32 countries.

 LaSalle, founded in 1968, has been a public company since July, 1997.

 On a pro-forma basis for last year, the combined revenues of JLW and LaSalle would have been about $750 million, of which about 78 per cent was generated in North America and Europe.

 The merger is expected to be completed early next year.

 In the middle of this year, Richard Ellis International tied up with US-based CB Commercial to create CB Richard Ellis.

 First Pacific Davies, the real-estate arm of local conglomerate First Pacific, has established links with British firm Savills.



JLW merger with LaSalle Partners to create global real-estate giant