Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Heavy-duty equipment for the oil and mining sectors Weir Group has bought a leading Singapore-based oil and gas technology provider for $114 million (£89m) in cash, in a move aimed at strengthening the firm’s position amid a recovery in energy markets.
Weir, which has a strong presence in North America and the Middle East, said the acquisition of KOP Surface Products rom Norway’s Akastor expands its range of pressure control technologies.
Jon Stanton, chief executive of Weir, said the acquisition was “a natural fit for Weir”. KOP’s position in Asia “complements Weir’s leading presence in North America and the Middle East”, he added in a statement.
The Scottish company noted that KOP’s current management team would continue to lead the business, reporting to Weir’s oil and gas division.
The deal is expected to close in the third quarter of this year.
