Northgate to takeover Redde, plans new vehicle renting firm

(Reuters) - Struggling British company Northgate Plc <NTG.L> said on Friday it would buy peer Redde <REDD.L>, in what would create one of Britain's largest vehicle rental services firm.

The merged company Redde Northgate will be 54% owned by Northgate shareholders and the remaining 46% by Redde, the companies said, and each Redde shareholder will get 0.3669 new Northgate shares for each Redde share.

(Reporting by Yadarisa Shabong in Bengaluru, Editing by Sherry Jacob-Phillips)