Allied Universal is set to win the bidding war for U.K. rival G4S PLC in a deal that would create a private security-services giant with global reach.
Closely held Allied, backed by private-equity firm Warburg Pincus LLC and Canadian pension fund Caisse de Depot et Placement du Quebec, moved into pole position after rival Garda World Security Corp., a Canada-headquartered security firm majority owned by asset-management firm BC Partners, decided not to raise its bid.
Allied would pay £3.8 billion, equivalent to $5.3 billion, to acquire G4S, whose half-a-million employees specialize in guarding events and infrastructure, among other businesses.
The two sides had been scheduled to settle the standoff this week in a rare bidding auction held by U.K. regulators. However, in a surprise move Monday, GardaWorld said it wouldn’t raise its current offer of £2.35 a share. That leaves Allied’s bid of £2.45 a share as the highest.
“There are better and less risky opportunities available to Gardworld,” the company said.
