• Text size      
  • Send this article to a friend
  • Print this article

Weir walks away from Metso deal

Weir Group has abandoned plans to create a £9 billion engineering giant after Finnish rival Metso rejected a takeover offer for the second time in two months.

Glasgow-based Weir went back to Helsinki-listed engineering firm Metso on May 20 with an improved proposal on its earlier approach in March.

It said the all-share deal represented a 13% hike on the previous proposals. It valued Metso's shares at 30.49 euros (£24.77) each, making the company worth about £3.7 billion.

However, Weir - whose market value is about £5.5 billion - said the Metso board "did not engage" on this second proposal and that the Finnish company rejected it as significantly undervaluing the business.

The group said: "Weir believes it made a compelling proposal but remains financially disciplined and therefore does not intend to pursue this opportunity further at this time."

Contextual targeting label: 
Business

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

236545