Scottish company Weir Group has continued its ambitious acquisition process, following a £200 million bid for an Australian mining company.
At present, it is only an indicative bid, with the Glasgow-based engineering company advising that their bid for Ludowici was subject to due diligence checks being completed. However, with the Brisbane-based company receiving much attention on a global scale, it would represent a significant purchase.
Announcing the bid to the stock exchange on Friday 10th February 2012, Weir Group confirmed that their bid was ten per cent above that of the one placed by Danish rivals FLSmidth.
The Australian company are largely based in their home market, and have a strong reputation in the coal-processing sector.
They also have a very highly respected role on the global stage, with operating sites in China, India, South Africa and South America; all upcoming economies. Altogether, they employ more than 1,000 people worldwide.
The acquisition would dramatically increase Weir’s mineral processing operations. They do not presently have any exposure in the coal market; a sector which continues to grow in BRICS countries.
The acquisition would be the latest in a long list of similar purchases in the past two years. With robust financial strategies, there is much progress than can be made in the present economic environment.
Many Scottish companies, perhaps with less dramatic expansion plans, are also funding growth through invoice factoring and discounting policies.
For their part though, Weir have seen acquisitions to the value of hundreds of millions, highlighted by their 2011 purchase of America’s Seaboard Holdings for £430m.