PORT-OF-SPAIN, Trinidad (CMC):

The Trinidad-based conglomerate, Neal & Massy Holdings, says it will merge its operations with the Barbados-based Shipping and Trading Company (BS&T) to form one of the largest Caribbean corporations.

Neal & Massy Holdings Chief Executive Bernard Dulal-Whiteway said the new entity would be called Neal & Massy BS&T Group Ltd. and would have more than US$2 billion in assets and annual revenues, and will employ more than 9,000 people across the region.

"This is a merger of two companies that is handled through an amalgamation process. Both Neal & Massy and BS&T have enjoyed a very good relation over the last 10 years, so much so that both of us invested in each other.

"We see it as a very good marriage after many years of courtship because the two companies, whilst they are in similar industries, we don't really overlap in any one territory to the extent that there is going to be any fallout or loss of jobs," he added.

Regulatory approval

Dulal-Whiteway said that the new entity would be registered and headquartered in Trinidad and Tobago and would continue to trade shares on both the Trinidad and Tobago and the Barbados Stock Exchanges following regulatory approval of the Securities and Exchange Commissions in both countries.

Shareholders of BS&T will exchange their stock for Neal & Massy shares and this will be done by an exchange ratio process, Dulal-Whiteway said, adding that the exchange ratio would be announced by next week.

The new entity will now run very diverse operations from retail to finance to energy, among others, in a range of Caribbean territories and in the United States.