Weir in £3.3B merger talks

Weir's reported deal with Metso is said to be worth �3.3 billion.
Weir's reported deal with Metso is said to be worth �3.3 billion.

SOUTHSIDE firm Weir has revealed it is in talks with Finnish rivals Metso Corporation over a possible merger of the two companies.

Confirmation came after market speculation that a deal was on the table.

A statement from the Helsinki-listed company said it had “received an unsolicited approach by Weir with a proposal for commencing discussions concerning a potential combination of the two companies”.

Metso also makes pumps and valves for oil and gas companies and the deal is reported to be worth £3.3 billion.

The statement from Metso said it is considering the move.

Meanwhile the southside giant, which has a global place in the market, confirmed it is interested in making a deal.

The company’s website announced today: “The Board of Weir believes that there is a strong strategic rationale for bringing the two companies together which would offer the opportunity for significant efficiencies and synergies, creating significant value for all shareholders. Weir envisages that the merged entity would be listed on both the London and Helsinki Stock Exchanges.”