Metso and Outotec tie-up wins backing at EGM

Metso says its Extraordinary General Meeting (EGM) has seen the Board of Directors’ partial demerger plan and combination with Outotec approved.

The decisions of the EGM will become effective as of the registration of the completion of the partial demerger, which is expected to take place in the June quarter of 2020, subject to the statutory creditor hearing process and receipt of all required regulatory and other approvals, including competition clearances.

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.

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.

Pursuant to the demerger plan, all such assets, rights, debts and liabilities of Metso which relate to, or primarily serve, Metso’s Minerals business will transfer, without liquidation of Metso, to Outotec.

The planned combination received approval from the Finnish Financial Supervisory Authority earlier this month.