Weir considers EUR 12-per-share offer for Outotec; Joy Global and Metso likely rival bidders
Weir Group, the UK-listed engineer, is considering making an offer for the Finnish-listed company Outotec, The Times reported.
The report pointed out that both companies supply industrial pumps to the mining sector but around 15% of Outotec is an industrial water-treatment operation. As Weir left that market a few years ago, it is not likely to be interested in that part of Outotec and, in the event of a takeover offer, would have to find an acquirer willing to take it on, the unsourced report said.
The report noted that Outotec is valued at approximately EUR 1.4bn, while Weir is worth just under GBP 5.9bn (EUR 7.5bn).
The Daily Mail reported that Weir is believed to be prepared to make an offer for Outotec worth EUR 12 per share. Outotec currently trades at about EUR 7.55 per share, the report noted. However, two rival acquirers are also interested in the Finnish group - Joy Global of Wisconsin, and Finland-based Metso. The unsourced market report noted that Weir unsuccessfully attempted to acquire Metso earlier this year, and said the Scottish company is now willing to offer a premium to ensure the acquisition of Outotec.
Source The Times (London), Daily Mail