Merger of security firms may mean job losses

Security firms Securicor and Group 4 have not ruled out the possibility of job losses in their 2,800-strong Irish workforce once the merger of their international parents is completed later this year.

UK-based Securicor and Denmark company, Group 4 Falck, revealed yesterday that they planned to merge in a paper-forpaper deal to be completed in the third quarter of the year. The agreement will create a company with a €5.65 billion turnover and 340,000 workers across 108 countries.

The merger will realise €52 million in savings a year for the new business. The companies' joint announcement to the London market yesterday said it intended to achieve 60 per cent of these savings within one year of the deal's completion, 90 per cent within two years and all savings by the end of the third year.

Securicor employs 2,000 people here and Group 4 has 1,800 workers. Spokespeople for the two groups yesterday said it was too soon to say whether or not there will be job losses in this country.

However, their announcement stated that they would attempt to keep job losses across the merged business at a minimum.

Both companies are primarily involved in providing manned security services in this country. They are also involved in areas like equipment supply and installation, and risk management consultancy.

The new group will be headquartered in the UK, but 57.5 per cent of the company will be owned by Group 4 Falck shareholders in Denmark. It will be led by Falck chief Mr Lars Norby Johansen.