Finnish engineering group Metso has rejected a recent proposal by Weir Group to combine the two companies.
Weir had proposed an all-share merger under which Metso shareholders would receive 0.8400 Weir shares per Metso share held, resulting in Metso shareholders owning, in aggregate, approximately 37 per cent of the combined company.
Weir states that the proposal was structured to enable the shareholders of both Metso and Weir to share in the very significant value creation that would result from material cost synergies in addition to further revenue synergies expected to be generated through the combination.
In keeping with the spirit of the merger proposal, Weir had proposed that the combined company would have a significant presence in, and a long-term commitment to, Finland as well as the UK and would be listed in both Finland and the UK with full index inclusion in both countries, alongside shared management and board responsibilities.
Weir states that it continues to believe that there is a compelling strategic rationale for bringing the two companies together in a merger structure. However, the board of Weir believes that it made an attractive merger proposal and there is no certainty that it will revise the terms of its proposal.