CCI okays acquisition of Metso Oyj’s minerals business by Outotec Oyj
The proposed combination will be achieved by way of a partial demerger of Metso Minerals
The Competition Commission of India (CCI) has approved the acquisition of Metso Oyj’s (Metso) minerals business by Outotec Oyj (Outotec) under Section 31(1) of the Competition Act, 2002.
The proposed combination relates to the acquisition of Metso’s minerals business Metso Minerals by Outotec.
All assets, rights, debts, and liabilities of Metso that relate to, or primarily serve, its minerals business comprising mining, aggregates, minerals consumables, minerals services, pumps, and recycling businesses will be acquired by Outotec.
The proposed combination will be achieved by way of a partial demerger of Metso Minerals pursuant to the Finnish Companies Act.
In return for the transfer of Metso Minerals to Outotec, the shareholders of Metso will receive newly issued shares in Outotec and hold the majority of the new entity’s shares of around 78 percent.
The remainder of the shares will be held by the shareholders of Outotec. The combined entity will operate under the name Metso Outotec.
The remainder of Metso’s business i.e. Metso’s flow control business essentially valves for process industries will continue to exist independently under the name Neles.
The Outotec is a public limited liability company incorporated and registered under the laws of Finland.
The Outotec Group has two registered entities in India i.e. Outotec India and Larox India. Its company comprises three business units (i) minerals processing includes grinding, filtration, flotation, etc (ii) metals refining which includes hydrometallurgy, smelting, etc and (iii) services which includes advisory, maintenance, operations, etc.
Metso is also a public limited liability company, incorporated and registered under the laws of Finland. Metso has two registered entities in India i.e. Metso India and RMEBS Controls.
Its business comprises four units (i) mining includes crushers, screens and feeders, etc (ii) aggregates which also includes crushers, screens and feeders, etc, but for the aggregates industry (iii) valves for process industries which include standard and severe service control valves, emergency shutdown valves, etc, and (iv) recycling which includes metal shredders and shears, etc.