Engineering company FLSmidth is in negotiations with thyssenkrupp to acquire its mining business.
thyssenkrupp previously placed its plant technology division on the market in October 2020 after recording a €235 million ($368 million) loss in earnings before interest and tax (EBIT) in the year ending September 2020.
The negotiations are considered as non-binding, with FLSmidth making no commitment to the deal materialising.
“The negotiations are at a non-binding stage,” a spokesman said in a FLSmidth statement. “Accordingly, there can be no assurances as to whether and when a transaction will transpire.
“Any transaction, if entered into, would be subject to clearances from statutory authorities, including approvals from merger control authorities.”
thyssenkrupp experienced a 41 per cent decline in order intakes in the 2019-20 fiscal year due to a “restraint in the award of large projects”.
FLSmidth is a multinational engineering company that offers minerals processing and materials handling solutions.
thyssenkrupp’s plant technology division specialises in belt conveyors, bucket wheel excavators, crushing plants, screens and stockyard systems.