Michelin set to acquire Fenner in £1.3bn deal

Michelin on course for Fenner takeover

Michelin on course for Fenner takeover

Michelin is to acquire United Kingdom engineering firm Fenner after a £1.2bn deal was agreed by the two companies.

The groups announced the deal after market close on Monday, with Michelin to shell out 610p per Fenner share, a 31% premium to the FTSE 250 firm's closing price on March 16. They will also be in line for a proposed interim dividend of 2.1p, which is expected to be declared at the end of April. It will also allow the group to take advantage of complementary footprints and expand its engineered material division with a complementary high-tech portfolio by combining mutual expertise in reinforced polymers and creating a platform to further expand its polymer activities.

Vanda Murray, chair of Fenner, said: "Fenner has successfully established itself as a world leader in reinforced polymer technology and the Board remains confident that Fenner's existing strategy would deliver significant value for Fenner shareholders as an independent company. Fenner will enable Michelin to accelerate its growth in this area, and to strengthen its position as a key player in the recovering mining markets with a comprehensive offering", said Jean-Dominique Senard, the chief executive of Michelin. Mastering high-technology materials is key to creating value in the coming years.

Fenner CEO Mark Abrahams added: "We find the cultural fit and business opportunities excellent with Michelin".

Fenner, based in Hessle in East Yorkshire, manufactures conveyor belts and reinforced polymer products for mining and industrial markets.

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