Competition Comm approves Finnish co Outotec's deal with Metso

Competition Commission of India (CCI) on Thursday said it has approved acquisition of Metso Oyj's minerals business by Outotec Oyj on the condition that certain modifications will be carried out in the proposed deal.

Competition Commission of India (CCI) on Thursday said it has approved acquisition of Metso Oyj's minerals business by Outotec Oyj on the condition that certain modifications will be carried out in the proposed deal. Both Finnish companies have presence in India.

The proposed combination would be achieved by way of a partial demerger of Metso Minerals pursuant to the Finnish Companies Act, an official release said. Outotec Group has two registered entities in India -- Outotec India Pvt Ltd and Larox India Pvt Ltd. Outotec has three business units -- minerals processing, metals refining and services.

Metso also has two entities in the country. They are Metso India Pvt Ltd and RMEBS Controls Pvt Ltd. The four business units of Metso are mining, aggregates valves for process industries and recycling, as per the release. The regulator said the proposed combination has been approved "subject to the carrying out of modifications proposed by the parties".

Under the deal, shareholders of Metso would receive newly issued shares of Outotec and hold the majority of the new entity’s shares of about 78 per cent. The remaining stake would be owned by the shareholders of Outotec. The combined entity would operate under the name Metso Outotec and the remainder of Metso's business (Metso's flow control business) would continue to exist independently under the name 'Neles', the release said.

"The proposed combination relates to acquisition of Metso's minerals business by Outotec. All such assets, rights, debts, and liabilities of Metso that relate to, or primarily serve its minerals business (comprising the mining, aggregates, minerals consumables, minerals services, pumps, and recycling businesses) will be acquired by Outotec," the release said. Deals beyond a certain threshold require clearance of CCI, which keeps a tab on unfair business practices in the market place.