This follows the announcement in February 2020 that Weir would seek to maximise value from its oil and gas division as it continued its strategic transformation into a premium mining technology pure play.
Jon Stanton, Weir Group CEO said: “We are pleased to have reached this agreement that delivers a great home for the Oil & Gas division and maximises value for our stakeholders. Alongside the previous sale of the Flow Control division and the acquisition of ESCO, it is a major milestone in transforming the Group into a focused, premium mining technology business.
It means Weir is ideally positioned to benefit from long-term structural demographic trends and climate change actions which will increase demand for essential metals that must also be produced more sustainably and efficiently. This will require the innovative engineering and close customer partnerships that define Weir, and it is why we are so excited about the future.”
Joe Creed, Vice President of Caterpillar’s Oil & Gas and Marine division said: “Combining Weir Oil & Gas’s established pressure pumping and pressure control portfolio with Cat’s engines and transmissions enables us to create additional value for customers. This acquisition will expand our offerings to one of the broadest product lines in the well service industry.”
As a Class 1 Transaction the sale is conditional upon the approval of Weir shareholders with a circular to be posted in due course, including a timetable for a General Meeting. The oil and gas division will now be classified as held for sale and will be reported in discontinued operations.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/05102020/weir-group-to-sell-oil-and-gas-division-to-caterpillar/