Amron Corp. will buy a majority stake in the Canadian industrial manufacturing company, which will become the second-largest private company in the world by revenue.
The deal is expected to close in the second quarter, according to a filing with Canadian and U.S. regulators.
Amron said it plans to create about 15,000 jobs and reinvest $15 billion in its operations, including $5 billion in research and development.
The move is part of Amron’s effort to expand its operations in Canada.
The company has about 3,000 workers in Canada, including some manufacturing jobs in Windsor, Ont., and B.C. The Windsor plant has been closed since last year.
The company said it expects to invest $1.6 billion in the Windsor plant, and another $2 billion in other Canadian manufacturing and services facilities.
The Canadian division of Amro Corp. is expected spend about $3 billion in Canada over the next 10 years on its investments, according a regulatory filing with the U.K. The investment is contingent on the company meeting certain regulatory requirements, including making “a good-faith effort” to find alternative employment opportunities in Canada and establishing a manufacturing base in Canada that is capable of producing goods for the U-S.
Office of the Chief Economist said in January that Amro is unlikely to generate enough revenue to generate the $15.5 billion required to cover its expenses for the year, and that it would be a significant cost to the Canadian economy.
The merger is expected not to affect the Canadian dollar, which has traded in a range of $0.75 to $0,75 per U.I. against the greenback.
The market was trading lower at $0/U.I., as investors and analysts expected the merger to close.
Aron shares have been down nearly 16% over the past 12 months.