Weir Group eyes new European acquisition

Glasgow-based firm said to be readying an offer for Finland's Outotec

Scottish engineering firm Weir Group is reportedly lining up another European acquisition in the form of Finland's Outotec.

Glasgow-based Weir is said to be readying a €12 (£9.50) a share offer for Outotec, which is involved in metal and mineral process machinery and engineering. Shares in Outotec are currently trading at about €7.55.

A spokesman for Weir told PE that the company could not comment on market speculation.

Meanwhile, Outotec said: “We have not been approached or received a bid for a potential combination of the two companies. Should we receive these types of proposals the board of directors would evaluate them thoroughly.”

However, it is believed that Outotec already has two admirers: Finnish rock crushing group Metso and Wisconsin-based Joy Global, which specialises in mining equipment.

In May Weir Group walked away from a £3.7 billion bid for Metso after it rejected an improved all-share offer.