NEWS
IRON and STEEL   Iron Ore  

Finland's Metso merges minerals technology arm with Outotec

ME-METALS: HELSINKI, July 4 (Reuters) - Finnish engineering group Metso is merging its main minerals technology business with smaller rival Outotec, Metso said on Thursday, sending shares in both companies higher.

Outotec shares were up 19 percent, and Metso’s were up 5 percent in early afternoon trading on the Helsinki bourse.

The new company, to be called Metso Outotec, will be one of the leading technology suppliers to minerals processing companies globally, Metso said, with combined sales of 3.9 billion euros ($4.4 billion) in 2018.

“The strategic plan for the merger is straightforward in our view, creating a larger scale minerals and aggregates business with cost opportunities to improve profitability,” JP Morgan analysts said in a note to clients.

The deal is expected to enable cost savings of at least 100 million euros and revenue synergies, stemming from cross-sales opportunities, of at least 150 million euros a year.

“This is an industry-shaping combination that joins two uniquely complementary companies. It builds on Outotec’s leading technology competencies and Metso’s excellent service capabilities,” Outotec’s Chairman Matti Alahuhta said.

Direct global rivals include Sandvik, FLSmith and Terex among others.

On completion of the deal, Metso shareholders will own approximately 78% of the shares and votes in Metso Outotec, with existing Outotec shareholders holding the remainder.

“The combination will be implemented through a partial demerger of Metso, in which all assets and liabilities of Metso that relate to Metso Minerals will transfer to Outotec in exchange for newly-issued shares in Outotec to be delivered to Metso shareholders,” Metso said in a statement.

In addition, Metso shareholders will retain their current shares in Metso, which will be renamed Neles. Neles’ 2018 sales would have totalled 593 million euros.

$1 = 0.8865 euros Reporting by Tarmo Virki; Editing by Niklas Pollard and Elaine Hardcastle

Our Standards:The Thomson Reuters Trust Principles.

 

News No: 5033
Date: 2019/07/05 - 01:14
News Source: REUTERS

Outotec  Metso  Finland  HELSINKI  minerals 

Comments:

Leave a Comment:

   
   
   
 

Development snapshot: Eight juniors looking to supply the electric vehicle revolution

While the prices for key battery minerals such as lithium, cobalt, nickel, rare earth elements, graphite and copper have so far been subdued in 2019, the general excitement about the future wide adoption of electric vehicles continues to fuel activity amongst Canada’s battery mineral juniors. Here is a look at eight such companies:
 

Eco Oro pulls out of Colombia gold concession amid legal battle -letter

Eco Oro Minerals Corp has pulled out of its Angostura gold concession in Colombia amid a legal battle with the Andean country over environmental restrictions the Canadian miner said made the project impossible, according to a company letter.
 

Iran’s Minerals Exports Increase

The Islamic Republic of Iran Customs Administration (IRICA) announced that exports of minerals from the country experienced a significant leap in terms of value and weight in the first month of the current Iranian year (started on March 21).
 

India: MMTC Floats 15,000 MT Billet Export Tender

MMTC- a leading international trading company in India and one of the major global players in minerals trade has invited tender for export of 15,000 MT Billets (150*150mm).
 

Amnesty accuses electric vehicles makers of using unethically sourced minerals

Human rights advocate Amnesty International has accused the electric vehicle (EV) industry of selling itself as environmentally friendly while most of the batteries they produce use polluting fossil fuels and unethically sourced minerals.
 

Pan African Minerals’ $2.2B claim over giant manganese deposit contract dismissed by court

Pan African Minerals, a unit of Timis Mining Corp., won’t resume production at its Tambao mine in Burkina Faso as a Paris-based arbitration court has dismissed the company’s $2.2 billion claim against the West African nation.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners