The planned combination of Metso and Outotec has received approval from the Finnish Financial Supervisory Authority, the two companies have reported.

The approval is tied to the Finnish language demerger prospectus relating to the combination of Outotec and Metso.

Outotec and Metso announced on July 4, that the boards of directors of Outotec and Metso had approved a combination agreement and a demerger plan that would see Metso Outotec Corp created.

As part of the deal, Metso Flow Control, which was recently split off from the Metso Minerals division, will become a pure-play listed entity under the name of Neles.

The combination of Metso Minerals and Outotec is highly complementary and will create a unique company in the industry, according to the two companies. “Metso Outotec will leverage the strengths of both companies, including technology and R&D, product and process excellence, scale and global service offering footprint. The combination will deliver significant benefits to all stakeholders,” they said.

An extraordinary general meeting of Outotec and Metso shareholders was expected to convene on October 29 to approve the demerger plan, with the registration of the completion of the demerger with the trade register maintained by the Finnish Patent and Registration Office expected to take place in the June quarter of 2020, subject to other approvals.