The British Motor Corporation Limited
Morris Motors Limited merged with The Austin Motor Company Limited in The British Motor Corporation Limited in 1952. The two groups were very evenly matched, not only in financial terms, each had produced and sold in the previous year an almost identical number of vehicles.
By an agreement between the Nuffield and Austin groups announced in November 1951 a new company was incorporated in February 1952 and named The British Motor Corporation Limited. On 29 February 1952 it offered to buy all the shares in Morris Motors Limited giving in exchange shares in BMC.
Holders of the Ordinary shares in either Morris or Austin received the same number of new Ordinary shares in BMC
Holders of Preferred shares, because of the four different classes in Austin's capital received various apportionments of new 5% Cumulative Preference shares related to their market valuations.
- If BMC's offer were accepted in full the capital of BMC would then be £9.2 million in Preference shares with £4.8 million in Ordinary shares.
- The effective date for exchange of the shares was to be 31 March 1952
On 10 April 1952 it was announced that sufficient acceptances had been received to satisfy the conditions of the offer of 29 February.
The first published balance sheet of BMC, 31 July 1952 showed:
-
- Current assets £54.8 million
- Current liabilities £28.0 million
- Net current assets £26.8 million
- Fixed assets £17.5 million
- Issued capital and reserves £44.3 million
On 8 September 1952 The British Motor Corporation advertised that it included:
- Morris Motors Limited
- Morris Commercial Cars Limited
- Nuffield (Australia) Pty Limited
- Nuffield Exports Limited
- Nuffield Metal Products Limited
- Riley Motors Limited
- The M.G. Car Company Limited
- The S.U. Carburetter Company Limited
- Wolseley Motors Limited
as well as:
- The Austin Motor Company Limited
- Austin Motor Export Corporation Limited
- The Austin Finance Company Limited
- Vanden Plas (England) 1923 Limited
- The Austin Motor Company (Canada) Limited
- The Austin Motor Company Limited (England)
- The Austin Motor Company (Australia) Limited
- The Austin Motor Company (South Africa) (Proprietary) Limited
- The Austin Motor Company (Rhodesia) Limited
Read more about this topic: Nuffield Organization
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