Metso and Outotec have agreed to combine Metso Minerals and Outotec to create a company in process technology, equipment and services serving the minerals, metals and aggregates industries. The combined company, comprising Metso Minerals and Outotec (but excluding Metso Flow Control), will be named “Metso Outotec.” It had combined sales of 3.9 billion pounds in 2018 (approximately 4.2 billion pounds including the impact of the recently announced acquisition of McCloskey by Metso).
Metso Flow Control will be a pure-play listed entity under the name of Neles with 2018 sales of 593 million pounds.
The combination of Metso Minerals and Outotec is highly complementary and will create a unique company in the industry. 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.
The current CEO of Metso, Pekka Vauramo, will become Metso Outotec’s CEO, and the current CEO of Outotec, Markku Teräsvasara, will become the Deputy CEO of Metso Outotec. Eeva Sipilä will become the CFO and Deputy CEO of Metso Outotec.
The board of Metso Outotec will include board members from both companies. It is proposed that Metso Outotec’s Chairman will be Mikael Lilius and that the Vice Chairman will be Matti Alahuhta.
The transaction is unanimously recommended by the boards of Metso and Outotec to their respective shareholders. The transaction is subject to, among other items, approval by a majority of two-thirds of votes cast and shares represented at the respective EGMs of Metso and Outotec in respect of the transaction, and regulatory approvals including competition clearances. As the transaction is proposed to be implemented by way of a partial demerger of Metso, it is also subject to a statutory creditor hearing process of Metso’s creditors.