new-recommended-broker-banner new-recommended-broker-banner

Shares of Neles a Finnish manufacturer of industrial machinery surged 38% after Alfa Laval a Swedish multinational company agreed to buy the company for 1.73 billion euros ($1.96 billion). The deal is structured as a cash tender offer where Neles shareholders will EUR11.50 for each outstanding share, which represents a 33% premium to the stock’s Friday closing price.

The deal will allow Alfa Laval to enter the flow-control solutions and services sector where Neles is a global leader. Alfa Laval has a history of successfully entering adjacent markets via platform investments in quality companies, which is how it has grown its operations in the Nordic region.

The company has a presence in Sweden, Denmark, and Norway.

Neles share price today

OMXHEX Chart showing Neles Corporation share price July 2020

According to a statement:

“Alfa Laval believes there are several areas where being part of the Alfa Laval Group can make a significant contribution to the future development of Neles, such as leveraging Alfa Laval’s existing global platform.”

Neles became a public company on July 1, 2020, after splitting from the Metso Corporation, but it has a business history spanning over 60 years.

The offer is expected to expire by 22 October 2020 by which time it should have already closed.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .