At the end of the 50's there were growing markets, but the same time growing demand on technological finesse. Especially with a dominating manufacturer around as Kodak.
For the west-german New-Agfa that caused the buying up of smaller manufacturers competing with overseas company doing the same in Germany. And striving for a final solution for their legal issues with their "mother", the east-german Old-Agfa. Which themselves were interested in such settlement too.
But this would not be enough. So the idea came up again to form an alliance with their major european competitor: the belgian Gevaert.
Both companies were of about equal size, both in a strong process of growth. The same time they differed in the markets they meanwhile got their stronghold: Agfa was strongest with consumers, Gevaert with non consumer markets.
In secrecy forms of collaboration were devised which ended in the merger of the two in 1964. Due to the legal situation then in Europe the founding of two new companies on shares was planned: Agfa-Gevaert AG and Gevaert-Agfa NV. Two entities in which Agfa and Gevaert put their plants whereas the shares of each entity were split 50/50.
The general company name became Agfa-Gevaert which also became part of the new logo.
A quite unique merger back then. A uniform company to the outside world, but actually two independant ones legally. The "fusion" was set in practice, by persons. The same persons controlling both companies. A difficult task with different national laws on executive boards, controlling boards, employees' participation in managemen. And the issue of language and culture, with hardly anyone in Germany speaking Flemish. Also the war was still on ones minds.
Together a much stronger No. 2 in the western world emerged, gaining 25% of the production of Kodak.
The same time the use of the brand name Gevaert was successively reduced until only Agfa was used in logos etc. Even at their flemish headquarters by now the name Gevaert is scarce.
This true marriage existed until 1981. In 1979/80 the silver-crisis endangered the photochemical industries. A private speculator had bought up silver stocks to an extend that prices were exploding. Up to an extant that the annual cost of silver would be the same as Agfa-Gevaert's annual revenues. Silver that had to be financed. A situation that endangered the existance of Agfa-Gevaert, would not fresh money be brought in.
At this situation the different family situations of the two marriage partners became important: Gevaert had put all their assets into Agfa-Gevaert. As Agfa did too. But Agfa was owned by the chemical concern Bayer. Bayer had the financial flexibility Gevaert was lacking. Thus Bayer dit an in-time investment to keep Agfa-Gevaert afloat. This new financial disbalance between the two partners at Agfa-Gevaert finally led to Bayer "paying-out" Gevaert, with Bayer shares.
Gevaert then turned into a financial holding company linked to the photo-world only loosely via their Bayer shares.
Agfa-Gevaert now was a german held company. But at the end of the 90's Bayer too lost interest in the photo-world in a beginning trend of the chemical industries to re-arrange themselves. So they started selling Agfa-Gevaert shares. Until in 2001 Agfa-Gevaert became a flemish company completely on public shares.
In 2004 Agfa-Gevaert sold their consumer branch including the plants related to that market (all in Germany) to a start-up that mysteriously went bancrupt within short time.
So, in a way, today one is back there where all started at Gevaert in 1964. But a standing most probably would not have been achieved, if one even had survived, would not have been that merger.
For the west-german New-Agfa that caused the buying up of smaller manufacturers competing with overseas company doing the same in Germany. And striving for a final solution for their legal issues with their "mother", the east-german Old-Agfa. Which themselves were interested in such settlement too.
But this would not be enough. So the idea came up again to form an alliance with their major european competitor: the belgian Gevaert.
Both companies were of about equal size, both in a strong process of growth. The same time they differed in the markets they meanwhile got their stronghold: Agfa was strongest with consumers, Gevaert with non consumer markets.
In secrecy forms of collaboration were devised which ended in the merger of the two in 1964. Due to the legal situation then in Europe the founding of two new companies on shares was planned: Agfa-Gevaert AG and Gevaert-Agfa NV. Two entities in which Agfa and Gevaert put their plants whereas the shares of each entity were split 50/50.
The general company name became Agfa-Gevaert which also became part of the new logo.
A quite unique merger back then. A uniform company to the outside world, but actually two independant ones legally. The "fusion" was set in practice, by persons. The same persons controlling both companies. A difficult task with different national laws on executive boards, controlling boards, employees' participation in managemen. And the issue of language and culture, with hardly anyone in Germany speaking Flemish. Also the war was still on ones minds.
Together a much stronger No. 2 in the western world emerged, gaining 25% of the production of Kodak.
The same time the use of the brand name Gevaert was successively reduced until only Agfa was used in logos etc. Even at their flemish headquarters by now the name Gevaert is scarce.
This true marriage existed until 1981. In 1979/80 the silver-crisis endangered the photochemical industries. A private speculator had bought up silver stocks to an extend that prices were exploding. Up to an extant that the annual cost of silver would be the same as Agfa-Gevaert's annual revenues. Silver that had to be financed. A situation that endangered the existance of Agfa-Gevaert, would not fresh money be brought in.
At this situation the different family situations of the two marriage partners became important: Gevaert had put all their assets into Agfa-Gevaert. As Agfa did too. But Agfa was owned by the chemical concern Bayer. Bayer had the financial flexibility Gevaert was lacking. Thus Bayer dit an in-time investment to keep Agfa-Gevaert afloat. This new financial disbalance between the two partners at Agfa-Gevaert finally led to Bayer "paying-out" Gevaert, with Bayer shares.
Gevaert then turned into a financial holding company linked to the photo-world only loosely via their Bayer shares.
Agfa-Gevaert now was a german held company. But at the end of the 90's Bayer too lost interest in the photo-world in a beginning trend of the chemical industries to re-arrange themselves. So they started selling Agfa-Gevaert shares. Until in 2001 Agfa-Gevaert became a flemish company completely on public shares.
In 2004 Agfa-Gevaert sold their consumer branch including the plants related to that market (all in Germany) to a start-up that mysteriously went bancrupt within short time.
So, in a way, today one is back there where all started at Gevaert in 1964. But a standing most probably would not have been achieved, if one even had survived, would not have been that merger.
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