Scottish engineer Weir Group faces a bidding war for an Australian mining equipment firm after a Danish rival upped its offer.
Weir had made a £200million approach for Ludowici but FLSmidth and Co, which started holding takeover talks with the Brisbane-based business last month, has now trumped the offer.
Glasgow-based Weir said yesterday it would not comment on FLS’s £250million bid for Ludowici but it had asked Australia’s regulatory takeovers panel to examine the improved offer.
Weir believed FLS’s initial £180million bid was final and wants the panel to rule that the firm should not be allowed to raise its original bid.
FLS said it would “take whatever steps it deems appropriate” to defend itself against Weir’s application to the panel.
Ludowici, whose board has unanimously approved FLSmidth’s second approach, said it had ended discussions with Weir and would no longer give it access to information for due diligence.
Ludowici chairman Phil Arnall said: “We have had the opportunity to work alongside FLSmidth during this process and it is clear that they have a similar culture with respect to customers and employees. This will facilitate the transition of our business into the FLSmidth Group.”
Weir’s takeover offer for Ludowici came after a series of acquisitions in recent months.
In November, it bought Seaboard Holdings for £433million and just last month it acquired Novatech for £113million.
The FTSE 100 company has a presence in more than 70 countries, with 13,000 staff worldwide.
It employs more than 500 people in Scotland spread between its Glasgow headquarters, Alloa and Aberdeen.
The Granite City operation services the upstream oil and gas industry.