Metso, Outotec announce to merge
05 Jul 2019, 09:07 ( 16 days ago)
A major Finnish mineral technology sector merger made news on Thursday as Metso and Outotec announced the combination of Metso Minerals and Outotec. The new company will be called Metso Outotec.
Metso Flow Control, the remaining part of Metso, is not part of the merger and will become a separately listed flow control equipment and services company named Neles.
A leading Finnish industrial machinery company, Metso has kept mining and automation as its main businesses since 2014. Outotec has been a market leader in mining technology and project design.
The combined turnover of the Metso Minerals and Outotec in 2018 was 3.9 billion euros.
The intention of the merger is to create a worldwide leading company in process technology and in equipment and services for the minerals, metals and aggregates industries, according to the announcement.
Metso CEO Pekka Vauramo, who will be the CEO of the new company, told media the joint company will "combine strengths" and have more endurance "when the next recession hits the mining technology industries, sooner or later".
The current Outotec CEO Markku Terasvasara will be the deputy CEO.
Metso Outotec will have over 15,000 employees worldwide. Metso shareholders will own 78 percent of the new company, and Outotec shareholders, 22 percent.
The state of Finland has owned roughly 15 percent of both Metso and Outotec, and has been the largest single owner of both. The Finnish state ownership management company Solidium on Thursday welcomed the transaction and noted that as one of the owners the state will get enhanced profits as well.