Scottish engineering firm Weir Group said yesterday it had made a £200million takeover approach for an Australian mining equipment company.
Brisbane-based Ludowici had received an offer from FLSmidth and Co, but Weir said its bid was 10% higher than that put forward by its Danish rival. FLS, which supplies engineering services and equipment, said last month it had agreed to buy all of Ludowici’s shares subject to conditions but would not rule out making a higher bid. Ludowici employs about 1,000 people across the world in locations including South Africa, India and China as well as its Australian base.
Weir chief executive Keith Cochrane said: “The potential acquisition would extend Weir’s offering in minerals processing and expand our exposure to the attractive and fast-growing coals sector where Weir is relatively unrepresented.”
Weir’s takeover bid comes after a series of acquisitions in recent months.
It bought Novatech for £113million last month and in November acquired Seaboard Holdings for £433million to boost its presence in the North American shale oil and gas sector.
FTSE 100 company Weir 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.