Alfa Laval: friendly takeover bid on Neles

(CercleFinance.com) - Alfa Laval announced on Monday that it has launched a friendly takeover bid for Neles, a Finnish group specialising in valve control systems, for over 1.
7 billion euros.

The Swedish engineering group is offering 11.5 euros in cash for each Neles share, representing a premium of almost 33% over Neles' closing price on Friday evening on the Nasdaq Helsinki market.

In a statement, Alfa Laval says it considers the industrial flow control market as a key growth sector, in which the acquisition of Neles will enable it to strengthen its position.

Split from the mining and construction equipment manufacturer Metso just a few weeks ago, Neles manufactures regulating, block and emergency valves, which are often critical in the oil and gas, energy and pulp and paper industries.

Its sales reached 642 million euros last year, compared with total sales of around 4.5 billion euros (47 billion Swedish kronor) for Alfa Laval.

The deal was warmly welcomed by investors on Monday morning, with the Alfa Laval share up 4.5% on the Stockholm Stock Exchange while Neles was soaring over 36% in Helsinki.



Copyright (c) 2020 CercleFinance.com. All rights reserved.