Weir Group in discussions about takeover bid for Metso
Weir Group, a listed UK-based engineering company, is holding discussions with Metso regarding a takeover bid for the Finnish valve and pump manufacturer, The Times reported. The newspaper cited one market source who said Weir and Metso have been holding informal talks about a merger for a while now. The source added that Weir has yet to make a formal offer for Metso.
The investment bank Merrill Lynch is advising Weir Group, the item said. Weir is looking to make progress on the deal this month, the article added.
Weir is believed to be willing to offer up to EUR 30 (GBP 24.80) per share for Metso, the item said. An offer at that price would value Metso at more than EUR 4bn, the report added.
The article quoted an industry source who said such a deal would come as no surprise.
Metso’s market capitalisation currently stands at USD 4.82bn (GBP 2.89bn), while Weir Group has a market capitalisation of GBP 5.40bn (USD 9.00bn).
Source The Times