1st Apr 2014 09:53
LONDON (Alliance News) - The Weir Group PLC and Finland's Metso Oyj confirmed Tuesday that Glasgow-based Weir has made an unsolicited proposal to Metso for a merger that would be worth about GBP8.36 billion.
The FTSE 100 engineering firm has a market capitalisation of GBP5.41 billion, while Helsinki-listed Metso's market cap is EUR3.56 billion.
Confirming a story first reported in The Times newspaper Tuesday, Weir said it has made Metso an indicative all-share merger proposal.
Separately, Metso confirmed it received the proposal and is in the process of considering it. However, it said it is currently not, and has not been, engaged in discussions with Weir about the proposal.
Weir said it "believes that there is a strong strategic rationale for bringing the two companies together which would offer the opportunity for significant efficiencies and synergies, creating significant value for all shareholders."
It said the merged entity would be listed on both the London and Helsinki stock exchanges.
Weir said it would make a further announcement in due course and warned that there is no assurance that an agreement will be reached.
Metso operates in mining and construction technology, energy and environmental technology, and paper and fibre technology.
http://www.thetimes.co.uk/tto/business/industries/industrials/article4050660.ece
Weir's shares was quoted down 2.8% at 2,464.00p late Tuesday morning.
Additional reporting by RTT News/dpa-AFX
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