Valmet Has Proposed a Statutory Merger between Valmet and Neles

Valmet announced a 14.88 percent share acquisition of Neles’ shares from Solidium Oy on June 17, 2020, and has gradually increased its ownership further to 29.5 percent. Valmet announced a 14.88 percent share acquisition of Neles’ shares from Solidium Oy on June 17, 2020, and has gradually increased its ownership further to 29.5 percent. Valmet sees that a combination of the two companies in the long-term would create excellent value for Valmet’s and Neles’ shareholders. Valmet has approached the board of directors of Neles with a proposal to start discussions on a potential statutory merger between the two companies.

The merger proposal is based on a strong underlying industrial logic and long-term shareholder value perspective. Both Valmet and Neles are leaders in their respective fields, the companies share a common heritage, serve to a large extent similar global customer industries and benefit from the same global megatrends. Valmet and Neles together would create a Nordic based globally leading company with a unique offering to process industries and a globally balanced expert organization of over 16,000 professionals around the world.

The combination would create excellent long-term value to the shareholders of both companies. It would form a strong platform for further business growth especially in automation systems and valves. Furthermore, the combination would be an exciting opportunity for Neles’ and Valmet’s employees, as well as customers of both companies who would benefit from the strength of the combined entity and offering. More specifically, the merger would create a global leader with:

over 16,000 employees and over EUR 4 billion in net sales
leading market positions in its respective segments
a large share of recurring, stable business with good profitability consisting of services, automation systems and valves
a strong confidence and reputation among its customers
a globally balanced expert organization with a deep understanding of process industry customers and shared performance orientation
unique capabilities for joint technology development and for leading industrial internet based remote services offering.

A statutory merger between the companies requires negotiations between the two companies. Even if such negotiations are initiated, there is no certainty that they will result in a final agreement.

Pasi Laine, president and CEO of Valmet, said, “Valmet and Neles share to a large extent similar customer base, have a common heritage and are supported by the long-term megatrends. We see that it would be highly beneficial for both Valmet’s and Neles’ shareholders if the two companies were combined. That would create a globally leading company with good potential for profitable growth and excellent shareholder value.”

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