Scottish engineering company Weir Group has confirmed it has made an indicative all-share merger proposal to the board of Finnish company Metso.

If a deal were to go ahead, it would create a company with a stock market worth of more than £8 billion.

Weir, led by Keith Cochrane, is the larger of the two companies, with a stock market worth of more than £5bn.

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In a statement to the stock market, Weir said: "The board of Weir 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.

"Weir envisages that the merged entity would be listed on both the London and Helsinki Stock Exchanges."