List Your Equipment For Free  /  Seller Login

Metso’s Offer for Svedala Cleared by EU Commission

Thu January 25, 2001 - National Edition
Construction Equipment Guide


Metso Corporation’s offer for Svedala Industri AB has been approved by the EU Commission subject to certain commitments. For the closing of the offer, clearance from the US Federal Trade Commission is also required. Metso remains committed to its conditional offer of June 21, 2000.

The Commission has, after its second phase investigation, approved the acquisition of Svedala Industri AB by Metso Corporation. The Commission has, however, expressed concern related to the creation of a dominant position on certain product areas of rock crushing equipment and required certain remedies.

On the basis of the EU Commission’s Statement of Objections and discussions with the authorities, Metso has analyzed the implications of the remedies required and has agreed to divest certain businesses. These businesses with annual net sales of approximately EUR 140 - 150 million relate to the development, manufacture, distribution and service of fixed and mobile rock crushing solutions for the global aggregates, construction and mining markets. The divestitures represent 6 - 7 per cent of Metso Minerals’ and Svedala’s

combined net sales.

The entire divestiture will include current Svedala’s product ranges of jaw crushers (Jawmaster), cone crushers (Hydrocone/thousand series, Eurocone) and horizontal shaft impact crushers (P&S), certain Svedala screens, feeders and conveyors as well as current Nordberg primary gyratory product ranges (GY, BS) together with related plant system solutions and aftermarket capabilities. The manufacturing operations to be divested are Svedala Arbrå Ab and Svedala Mobile Equipment AB in Sweden and Svedala S.A. located in France. The divestiture will also include the resources necessary for the distribution and sale of the specific products and services in relevant market areas. Part of the divestitures will be made to remove overlapping business operations between Metso

Minerals and Svedala.

The process to find a buyer for the remedy package has already been initiated.

The review of the application for clearance with the Federal Trade Commission in the US is progressing. The Australian, Polish and Turkish competition authorities have accepted the acquisition.

The acquisition of Svedala represents an important strategic move and Metso remains committed to the acquisition. The integration planning process of Metso and Svedala has been ongoing since the fall to the extent permitted having due regard to the regulatory approval process.




Today's top stories

Rebuilding Process Begins Post-Helene

KCI, MoDOT Work to Improve I-55 Near St. Louis

ODOT's I-75 Rehabilitation Currently On Time, Budget

Associated Equipment Distributor's Former Chairman Craig Drury Urges Senate to Reconsider Broad Approach to Right to Repair

Mecalac Launches Range of Hammers, Revolutionizing Efficiency On Working Sites

New Holland Construction Unveils E90D Midi Excavator

JCB Launches Biggest X Series Crawler Excavator With 370X

Alabama AGC Honors 2024 Winners of 40 Under 40 in Construction Awards


 







39.04690 \\ -77.49030 \\ Ashburn \\ PA