AP
Shareholders have approved a nearly $US3.5 billion ($A3.82 billion) stock buyout, clearing the final hurdle for Stanley Works to acquire Black & Decker.
The two are set to form a new company called Stanley Black & Decker, and become the United States' largest toolmaker, at the end of business on Friday, according to regulatory filings submitted to the Securities and Exchange Commission.
The new Stanley Black & Decker will retain headquarters in New Britain, Connecticut, where Stanley Works is headquartered. Meanwhile, the company's power tool division will remain headquartered in Towson, Maryland, where Black & Decker operates.
Under the agreement, first announced in November, Black & Decker shareholders will receive stock valued at $US57.57 for each share. Based on the company's 60.2 million shares outstanding July 24, the deal is worth $US3.46 billion ($A3.78 billion).
Stanley shareholders will own about 50.5 per cent of the combined company, while Black & Decker shareholders will hold the rest.
Black & Decker has 22,100 workers while Stanley Works has 18,200. The companies hope their combination will produce at least $US350 million ($A382.5 million) in cost savings within three years, in part through an unspecified number of job cuts, and increase earnings per share by $US1 within three years.
Earlier on Friday, European regulators approved the deal and the Stanley Works board of directors approved six board members of Black & Decker to join the new company's board. Black & Decker chief executive Nolan D Archibald will become chairman of the board after the acquisition.
