Jones Lang LaSalle (JLL), the New York-listed global commercial real estate firm, announced on Friday it is merging with smaller peer King Sturge. The deal values King Sturge at £197 mln (EUR 227 mln).

The transaction is expected to close on 31 May 2011. It includes £98 mln to be paid in cash to King Sturge's partners at closing and the balance paid out in cash over five years.

The combined firm will be the clear leader in the UK and also in continental Europe, JLL said, and ahead of CB Richard Ellis which in 2010 had re-gained the first position in PropertyEU's Top 10 brokers ranking.

All 43 King Sturge offices and businesses across Europe, including 24 in the UK, will become part of JLL and will operate under the JLL brand. Integration of business lines and teams, and the full rebranding of all business activities, will begin immediately, US-based JLL said in a statement.

'The obvious strategic and cultural fit between JLL and King Sturge makes this a logical and very attractive proposition for both firms,' said Christian Ulbrich, JLL's CEO for EMEA. 'It gives us a scale and depth of expertise that will make our client service delivery capabilities second to none in both the UK and continental Europe.'

Richard Batten, joint senior partner at King Sturge added: 'This is a coming together of two great companies who are culturally aligned, with fantastic business synergies, to create the best firm of property advisers in Europe.'

The companies are highly complementary, as JLL is stronger in the London agency and investment markets and King Sturge is a leading force in the UK regional markets. The operation will also boost JLL's presence in the rapidly growing Central, Eastern and South-Eastern European markets.

Andrew Gould will serve as Chief Executive of the merged business in the UK. Richard Batten will assume the role of UK Executive Chairman.

The merged business operates in 70 EMEA markets across 30 countries employing 5,300 people providing integrated real estate services worldwide to investor, owner and occupier clients. The UK business will have 2,700 employees across 34 offices.