Weir in £200m offer for Aussie firm
Saturday 11 February 2012
Weir Group, the deal-hungry FTSE 100 pump manufacturer, revealed more appetite for acquisitions yesterday, when it made an A$294m (£200m) offer for an Australian mining equipment maker.
Weir's A$7.92-a-share approach for Ludowici is 10 per cent higher than one by Danish rival FLSmidth last month. But the British pumpmaker said that its bid was still "subject to the satisfactory completion of due diligence and may or may not lead to an offer".
Ludowici, which employs 1,000 people around the world, makes vibrating screens and centrifuges that are used mainly in the coal-mining industry.
Weir's chief executive, Keith Cochrane, said: "Ludowici is a respected brand in the coal processing sector. The potential acquisition would expand our exposure to the attractive and fast-growing coal sector where Weir is relatively unrepresented."
If the deal does go ahead, it will be the company's third acquisition in almost as many months, with the previous two focusing on the controversial "fracking" method of gas extraction.
Last month, it spent $176m buying Novatech, a Texan pump parts manufacturer, while in November, it paid $675m to buy US wellhead specialist Seaboard Holdings.
Both firms make equipment used in fracking.
- 1 Stephen Fry explains what he would say if he was 'confronted by God'
- 2 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 4 Ball pool for adults opens in London
Stephen Fry explains what he would say if he was 'confronted by God'
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
Hard line on immigration could cost Tories the election
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...