LONDON, Dec 14 — British pest control company Rentokil said today it is acquiring its US rival Terminix in a cash and stock deal worth US$6.7 billion (RM28 billion).

The merger, which is expected to be completed in the second half of 2022, will create a firm with 56,000 staff and nearly five million clients.

The goal of the merger is "to create the global leader in pest control and hygiene and wellbeing, and the leader in the pest control business in North America, the world’s largest pest control market,” Rentokil said in a statement.

Rentokil said it would pay around US$1.3 billion in cash and the rest in shares in an offer that would give Terminix shareholders a 47 per cent premium over yesteday’s closing price.

Terminix shareholders would hold 26 per cent of the new company.

Rentokil shares plunged more than 9 per cent in trading on Tuesday in London. — AFP