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Valmet and Neles reveal merger agreement

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Valmet and Neles Corporation have announced that their respective boards have signed a merger agreement.
The combined company will have an accumulative net sales for 2020 of approximately €4.3 billion.
The combination is expected to generate annual run-rate synergies of approximately €25 million of which approximately 60% are expected to be achieved by 2023 and approximately 90%by 2024.
Valmet chairman Mikael Mäkinen said: “The combination of Valmet and Neles will create a broad and competitive product offering for our customers and build on the excellent reputation of both of our businesses. The transaction creates a global industrial leader with a bright future beyond what we could achieve separately. Together our businesses are better positioned to drive innovation and leadership in sustainability.”
Neles chairman Jaakko Eskola added: “The common heritage of Valmet and Neles will allow for a smooth integration of our two companies to the benefit of shareholders, customers and employees. Neles will benefit from enhanced scale to accelerate its growth and building on the excellent work done by Neles management since the formation of Neles as an independent company in 2020.”
Valmet president and CEO Pasi Laine said: “We are delighted with the announcement of the merger which will create an even stronger Valmet with a strong offering to global process industries and a global team of 17,000 professionals around the world. The combined company will have solid business fundamentals, a strong financial profile, attractive growth potential and estimated synergies contributing to the enhanced shareholder value.”