Metso Minerals and Outotec to combine to form new company
Metso and Outotec have announced that they have agreed to combine Metso Minerals and Outotec to create a combined company in process technology, equipment and services serving the minerals, metals and aggregates industries. The company (excluding Metso Flow Control) will be named Metso Outotec. Metso Flow Control will become a separate listed entity under the name of Neles.
The companies believe that the combination of Metso Minerals and Outotec is highly complementary and will create a unique company in the industry. Metso Outotec will leverage the strengths of both companies, including technology and R&D, product and process excellence, scale and global service. The combination will deliver significant benefits to all stakeholders.
The current CEO of Metso, Pekka Vauramo, will become Metso Outotec’s CEO, and the current CEO of Outotec, Markku Teräsvasara, will become the Deputy CEO of Metso Outotec. Eeva Sipilä will become the CFO and Deputy CEO of Metso Outotec.
“Today is an exciting day as we announce the transformational combination of two great companies and simultaneously create an independent leader in flow control,” said Metso Chairman Mikael Lilius. “The combination of Metso and Outotec is a unique opportunity to deliver significant value for our shareholders with a broad presence across minerals, metals and aggregates value chains and an even stronger platform for growth and innovation.”
Outotec Chairman Matti Alahuhta said: “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. Metso Outotec’s global operating network, scale, wide technology and service offerings and sustainable development principles will unlock significant benefits for all stakeholders.”
The transaction is subject to, among other items, approval by a majority of two-thirds of votes cast and shares represented at the respective EGMs of Metso and Outotec in respect of the transaction, and regulatory approvals including competition clearances.
Under the name Neles, Metso will continue as a separately listed entity focused on flow control, independent from Metso Outotec and 100% owned by Metso shareholders at completion.
The current legal entity Metso will be renamed Neles; its headquarters will be in Vantaa, Finland, and its listing on Nasdaq Helsinki will continue. Olli Isotalo will become CEO of Neles and will join Metso’s management team.
“I firmly believe that timing is now right to establish a focused standalone flow control company,” said Lilius. “Neles offers an exceptional product portfolio and service offering with best-in-class profitability.”
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