# Weir Group completes sale of Oil & Gas to Caterpillar Inc. for $405m

- Link: https://www.directorstalkinterviews.com/weir-group-completes-sale-of-oil-gas-to-caterpillar-inc.for-405m/412957730
- Published: 2021-02-02T07:10:50+00:00
- Author: Giles

The **Weir Group PLC** (LON:WEIR) has today announced that it has completed the 
sale of its Oil & Gas division to Caterpillar Inc. 

The sale, for an enterprise value of $405m, subject to customary working capital
and debt-like adjustments, was first announced on 5 October 2020 and approved by
Weir Shareholders on 23 November 2020. 

Since then, the Group’s joint venture partner in Saudi Arabia-based Arabian Metals
Company (AMCO) has exercised its pre-emption right, as set out in the Class 1 circular
published on 3 November 2020, to purchase Weir’s 49% stake in AMCO. Therefore, the
cash proceeds from the sale of the division, subject to customary working capital
and debt-like adjustments, will be split between $375m received from Caterpillar
Inc. and $30m to be received on completion of the sale of AMCO, which is expected
to occur in the first half of this year.

> **Commenting, the Weir Group CEO Jon Stanton said:**
> “I would like to thank the Oil & Gas team for their magnificent contribution to
> Weir over the years. The sale delivers a great new home for the business and its
> people, and enables Weir to fully focus on our role as a provider of premium technology
> to global mining and infrastructure markets.”

Weir Oil & Gas has been reported under discontinued operations since the sale agreement
was announced.  The Weir Group will announce its 2020 full year results on 2 March
2021.

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