The boards of Metso Corp. and Outotec Oyj have unanimously approved a plan to combine Metso’s Minerals business (Metso Minerals) with Outotec. The combined company will be called Metso Outotec Corp. Upon completion, Metso will be renamed Neles Corp. and will be a separately listed entity focused on flow control.

Metso Outotec will have a presence across the full minerals processing and metals refining value chain, with a differentiated ability to deliver end-to-end solutions across the whole process from crushing to end products, the companies said in the announcement. The combined company will own a portfolio of leading technologies in comminution, beneficiation and metals refining, as well as a market-leading aggregates business and global strength in services, it added.

“This is a unique opportunity to create value for our customers, employees and partners globally,” said Pekka Vauramo, CEO Metso. “Metso Outotec will have capabilities that will enable us to drive sustainable growth, while providing our customers with high quality technology, equipment and services that will ultimately improve their businesses. We will have an extensive global presence, complementary offering, strong services and a large installed base.”

Upon completion of the arrangement, Vauramo will become Metso Outotec’s CEO, and the current CEO of Outotec, Markku Teräsvasara, will become the deputy CEO of Metso Outotec. Eeva Sipilä will become the CFO and deputy CEO of Metso Outotec.

During June, Metso signed an agreement to acquire McCloskey, a Canadian mobile crushing and screening equipment manufacturer. This acquisition is expected to complement the business profile of Metso Outotec, expanding the aggregates business and strengthening the customer reach especially to general contractor customers.

On a combined basis, Metso Minerals and Outotec had 15,630 employees globally, as of March 31, with close to 100 nationalities represented. The transaction is expected to be completed in the second quarter of 2020.