Fortescue Metals Group Ltd will buy Williams Advanced Engineering Limited (WAE) from private equity firm EMK Capital and Williams Grand Prix Engineering Limited for 164 million pounds($222.15 million), the iron one miner said on Monday.
Fortescue added that one of the first major projects to be developed will be a battery-electric train concept, details of which would be released in early 2022.
Fortescue Future Industries (FFI) and WAE will work together to decarbonise Fortescue – and in turn, the global heavy industry and hard to abate sectors, Fortescue Chairman Andrew Forrest said.
Australia’s richest man, Forrest is looking to turn the company into the world’s biggest green energy group, with a focus on hydrogen at its green power arm, FFI.
“This acquisition and investment will facilitate the company’s further growth to support the delivery of zero-emission products and services across existing sectors – such as automotive, motorsport and off-highway – and new sectors too,” WAE Chief Executive Officer Craig Wilson said.
The transaction, which will be funded from Fortescue’s existing liquidity sources, was expected to conclude by the end of March 2022.
(By Indranil Sarkar; Editing by Chris Reese)