Denmark’s FLSmidth said on Thursday it is buying German engineering firm Thyssenkrupp’s mining business for €325 million (about $386m), closing six months of negotiations between the two companies,
Thyssenkrupp’s mining business, TK Mining, is present in 24 countries with engineering and global service centres, competing with Finland’s Metso Outotec and Sweden’s Sandvik and Atlas Copco.
The business combination will create a global mining technology provider with operations from pit to plant, extending strategic relationships with a complementary product offering and customer base as well as improved geographic coverage, the firms said in the statement.
“TK Mining’s extensive active installed base, together with FLSmidth’s strong existing service setup, will provide additional aftermarket opportunities, while the joint R&D capabilities and combined portfolio will enable accelerated innovation in digitalization and MissionZero solutions,” FLSmidth said.
In recent months, Thyssenkrupp chief executive Martina Merz has focused on improving the company’s bottom line and structure by divesting underperforming businesses.
The service provider is also in advanced talks with potential buyers for its Italian stainless steel division AST, as well as its Infrastructure unit, which, among other goods, makes scaffolding and flood protection equipment, Merz said in May.
The deal, announced in January, is expected to close in the second half of 2022.