German competition authorities prohibit Loomis from acquiring Ziemann
On January 29, 2019 Loomis announced the agreement to acquire the German cash handling company Ziemann Sicherheit Holding GmbH (Ziemann). As communicated, the transaction was dependant on merger control clearance from the German Federal Cartel Office (FCO). The FCO has today announced their decision to prohibit the acquisition. The demands for concessions from the FCO have been unexpectedly extensive.
As Loomis and its advisors are of the opinion that the demands from the FCO are too far reaching Loomis will evaluate the possibility to file a legal complaint in Germany.
“We are surprised and disappointed by the stricter than anticipated approach from the FCO, but Germany continues to be an attractive market for Loomis. We will now evaluate legal options as well as continue to focus on our existing German business as a platform for growth. This decision does not affect our strong commitment to reach our financial targets for 2021”, says Patrik Andersson, President & CEO of Loomis.
Loomis is obligated to pay a break-up fee to the seller of EUR 2 million, which will be recognized and reported in the fourth quarter 2019 as acquisition related costs.
December 18, 2019
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Loomis offers safe and effective comprehensive solutions for the distribution, handling, storage and recycling of cash and other valuables. Loomis customers are banks, retailers and other operators. Loomis operates through an international network of more than 400 branches in more than 20 countries. Loomis employs around 25,000 people and had revenue in 2018 of SEK 19.2 billion. Loomis is listed on Nasdaq Stockholm Large-Cap list.
This information is information that Loomis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted or publication, through the agency of the contact persons set out above, at 3:25 p.m. CET on December 18, 2019.