It was announced on 29 July 2021 that FLSmidth will acquire thyssenkrupp’s Mining business (tk Mining). As stated in the announcement, it was still being negotiated if thyssenkrupp’s mining activities in India which are part of a larger integrated entity not fully owned by thyssenkrupp would be part of the transaction. Following discussions between the parties and with the minority shareholders, it has now been agreed to exclude the tk Mining activities in India from the final transaction.
Consequently the total consideration (enterprise value) for tk Mining will be reduced by EUR45 million (approximately DKK335 million) to EUR280 million (approximately DKK 2.1 billion). FLSmidth says it already has a strong presence in India “and the tk Mining activities in India are not strategically important for the transaction. The exclusion of the tk Mining activities in India will not affect the transfer of tk Mining’s key IP and technologies to FLSmidth as part of the overall transaction.”
In 2020, the tk Mining activities in India delivered revenue of ~EUR100 million. tk Mining (excluding tk Mining activities in India) delivered revenue of ~EUR680 million (~DKK5.1 billion). FLSmidth said: “The exclusion of the tk Mining activities in India has no impact on the expected synergies and integration costs for the transaction. tk Mining is still expected to be net profit and cash flow positive from 2024 on a stand-alone basis. The EV/EBITDA normalised incl. synergies is around 3.5x post integration.”
In 2020, thyssenkrupp was awarded a contract to supply three semi-mobile-crushing-plants (SMCP) to a major open-pit coal mine in the Singrauli district of Madhya Pradesh, India, namely the Jayant mine of Northern Coalfields Ltd, a division of state compay Coal India. The plants are being used for a new 15 Mt/y coal handling plant (CHP). Looking to boost production from 10 Mt/y to 25 Mt/y, the miner is implementing an in-pit crushing and conveying system utilising the in-pit SMCP for the CHP, which will, thyssenkrupp says, make the production process more efficient and stable.
