FLSmidth puts thyssenkrupp mining business in takeover sights

FLSmidth is in talks to acquire thyssenkrupp’s mining business, potentially creating further consolidation in the global mining equipment and technology space.

thyssenkrupp put its Plant Technology division up for sale in October last year after reporting a €235 million ($368 million) loss in earnings before interest and tax (EBIT) in the year ending September.

The division comprises thyssenkrupp’s chemical plant, cement plant and mining equipment businesses.

In the 2019/2020 fiscal year, the company experienced a 41 per cent decrease in order intake in its mining and service units compared with the prior year mainly due to a “restraint in the award of large projects.”

By November, thyssenkrupp had received a number of interests for “various constellations in Plant Technology”.

FLSmidth stated the negotiations were at a non-binding stage and that there could be no assurances as to whether and when a transaction would transpire.

“Any transaction, if entered to, would be subject to, amongst other, statutory clearances from authorities, including approvals from merger control authorities,” FLSmidth stated.

FLSmidth is a Danish multinational company with a key focus on the mining industry, offering a flowsheet of mineral processing and material handling technology and equipment, from in-pit crushing and conveying to tailings management.

thyssenkrupp is a German multinational company that manufactures a range of mining and materials handling equipment under its Plant Technology division, including belt conveyors, bucket wheel excavators, crushing plants, screens and stockyard systems.

Mergers and acquisitions in the mining technology space were headlined by the combination of Metso Minerals and Outotec last year as they formed a minerals processing company called Metso Outotec.

Metso Minerals and Outotec had a €4.186 billion in combined sales for 2019, which is expected to strengthen as Metso Outotec enhances its offerings across sustainable technology, solutions and services for minerals processing.

The newly formed company plans to focus on growing its presence in the Asia Pacific region, including Australia, following a contribution of 23 per cent to the originating companies’ combined sales in 2019.

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