Anything but average

THE forthcoming takeover by Lindleys of the Richards Hogg Group Limited, if approved by the UK Mergers and Monopolies Commission, should prove anything but the average takeover. The consequences are potentially far-reaching. In one fell swoop, upwards of fifty per cent of competitive adjusters could disappear. Both Lindleys and Richards Hogg have significant offices in London, New York, Piraeus, Hong Kong, Singapore, Rotterdam and Seoul. The inevitable amalgamation of offices will leave shipowners with even less of a choice when it comes to adjusters.

While the market capacity may not be there to support large offices manned by expensive expatriots, survival of independent offices manned by skilled locals could become the order of the day. Indeed, it would not be surprising to see the re- emergence of some old names, or a number of a new smaller and more localised firms appearing on the scene. In the current market, big (or even bigger) is not necessarily beautiful.

With the Charles Taylor Group Plc - manager of the Standard P & I Club - behind the new Lindleys/Hogg combination, many brokers may be reluctant to expose their clients to potential competitors, particularly on the P & I side. Hull underwriters may also show a reluctance to approve the appointment of the new group as adjusters where the vessel in question is entered with the Standard Club. Questions of conflict of interest may well arise. Will other P & I clubs, particularly those retaining a quarter RDC cover, wish their members to instruct the Lindley Hogg Group? All these factors may not bode well for the new group. It must be said, though, that by combining the two firms a new tiger has emerged. It may, however, need to get leaner and hungrier in the short term.

It is not surprising, in light of the present state of the adjusting industry, that the proposed Lindleys/Richards Hogg deal cannot be viewed as a run-of-the-mill average takeover. It is one which will impact the adjusting field worldwide and has the potential to generate intrigue in the future.

Another recent reported development is that Vanguard Adjusters will be taking over the management of Manley Hopkins Greece. This follows the establishment of INDECS HELLAS by ex-senior adjusters from Manleys. What happens next?