After months of speculation marine electronics specialist Garmin have made a formal offer to acquire competitor Raymarine for a price of 15 pence per share. If approved the deal would see Garmin pay Raymarine shareholders an estimated £12.5 million, Garmin would also have to taken the significant debt that Raymarine currently owe, last published at a net figure of £91.6 million.
Raymarine have seen a sharp drop in share price from there peak in April 2007 at 490p per share this has been blamed on the whole on the decline in demand for hi-end electronics since the economic down turn.
There seems to be mixed opinions to whether the merger will be allowed to go through due to competition laws, but Garmin believe when combined the 2 company's will still below 30% of the market share which is below the level where concerns normally arise.
We will keep you posted with any further updates.
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