London, U.K.— In yet another megamerger, Siebe plc and BTR announced plans Nov. 23 to merge and create a new company—called BTR Siebe for now—worth a combined $12.63 billion. The agreement calls for BTR shareholders to receive 0.533 new BTR Siebe shares for every former BTR share, while Siebe shareholders will retain their shares in the new company. Siebe shareholders will hold 55% of the new group, while BTR shareholders will get 45%. Recently criticized by investors, who cited poor performance from each, both firms say the merger would create "a world-class engineering group with global leadership in the controls and automation industry." BTR Siebe is expected to benefit from cross-selling products and services to an enlarged customer base. Press reports say it will cost the new company about £400 million to save approximately £80 million in the first year, £160 million in the second year, and £250 million annually after three years. However, reports add it's also likely the two will cut their combined 125,000-person workforce by about 4%, or more than 5,000 jobs. Lord Marshall, Siebe's chairman, will become chairman of BTR Siebe, while Ian Strachan, BTR's ceo, will be the new firm's deputy chairman. BTR Siebe will have five divisions: intelligent automation, controls, power systems, industrial drives and equipment, and automotive. The merger is expected to be completed by February 1999.