Mining equipment manufacturer Atlas Copco is close to securing a 75 per cent stake in Shandong Rock Drilling tools as it expands further into the Asian market.
The 75 per cent stake will give Atlas a controlling share in the rock drilling manufacturer, and the deal also includes a stake in a steel mill, Reuters reports.
So far the purchase price remains confidential and Atlas Copco has made no comment on the deal.
Atlas Copco’s management has previously hinted at making acquisitions in order to grow its business, and despite the global slowdown the company has strong cash reserves.
Both Atlas Copco and Swedish rival Sandvik are major players in the mining equipment market, and supply half of the gear used for underground mining globally.
Shangdong Rock Drilling tools employs around 400 staff, and as well as servicing China its mining products are exported to markets including Australia, Canada, Japan, and the United States.
Shandong Sanshan Group, which owns Shangdon Drilling Tools, is a privately controlled firm with annual revenue of around $62-$77 million, according to Reuters.