(Reuters) - Spectrum Brands Holdings Inc (SPB.N), which makes Rayovac batteries and Remington personal care products, said on Monday it would merge with its controlling shareholder HRG Group Inc (HRG.N), a holding company, in a deal valued at $10 billion.
HRG Group, formerly known as Harbinger Group and with a market valuation of $3.21 billion, has two main holdings, Spectrum Brands in which its own nearly 60 percent and an insurance company Front Street Re (Delaware) Ltd.
Spectrum Brands shareholders will get one newly issued share of the combined company for each Spectrum Brands share they own in a tax-free transaction, while HRG shareholders will get shares of the combined company to match their current stake.
Leucadia National Corp, HRG's largest shareholder, is expected to hold about 13 percent of the combined company. HRG's legacy stockholders will own another 45 percent of the combined company.
Spectrum Brands, which also makes George Foreman grills, said its current management team and board will run the combined company.
The deal will not impact the pending sale of Spectrum Brands' battery business to Energizer Holdings Inc (ENR.N) and the company's plan to explore alternatives for its appliances business.
HRG's shares were up about 1 percent in early trading, while Spectrum Brands' shares rose 2.3 percent.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Savio D'Souza)