Michelin has announced that it would be acquiring UK based Fenner plc, which owns Fenner Precision Polymers in a USD 1.7 billion deal. The deal is subject to approval from Fenner’s shareholders next month and is likely to be finalized by June.
Jack Krecek, managing director for Fenner Precision Polymers said that the company does not anticipate any material change to its operations as an outcome of the deal and said as part of a prepared statement that the company was enthusiastic about becoming part of a much larger organization having an expanded global reach.
Michelin expects the Fenner acquisition to help it cater better to the needs of the mining industry, and to expedite its growth in high-technology materials.
Fenner makes conveyor belts for the mining industry while Michelin makes tires for mining equipment. The deal will allow Michelin to provide a comprehensive range of products to its clients in the mining industry, which Michelin expects to rebound in the coming years. The mining industry had experienced a heavy downturn during the 2015-16 commodities crash and is slowly recovering thanks to the growing demand for automotive batteries used in electric vehicles and the upswing in prices of metals.
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