stanley works

stanley works

New York (Dow Jones) - Stanley Works (SWK) agreed to buy Black & Decker Corp. (bdk) for $ 4.5 billion in stock in a deal that allows the business - the name and address of the American industrial tools - Costs reduction and exercise greater influence on prices.

Both companies have felt the pressures of the recession, particularly given their close links with the housing industry. The companies expect the combination, which has been approved by both companies' boards, will result in savings of $350 million a year and to add to earnings by the third year. The transaction would represent "a landmark move in the tools industry,??? and one that makes strong sense as the housing market resumes some growth and raw materials prices rebound, said Brian Sozzi, retail analyst at Wall Street Strategies. Together the companies have greater purchasing power.

Mass merchant retailers like Wal-Mart Stores Inc (WMT), Home Depot Inc. (HD) and Lowe's Cos (LOW) may be affected, as one of Black & Decker, Stanley had more power than the state of pricing in line when it comes to these companies to provide a tool , and not on the basis of a separate, Sozzi said.