Alfa Laval will not complete the tender offer for shares in Neles

As previously announced, Alfa Laval and Neles Corporation have on 13 July 2020 entered into a combination agreement pursuant to which Alfa Laval has made a voluntary recommended public cash tender offer for all issued and outstanding shares in Neles. The acceptance period under the Tender Offer commenced on 13 August 2020 and expired on 30 October 2020.
Alfa Laval has published the following information:
“According to the final result of the Tender Offer, the shares validly tendered and not properly withdrawn in the Tender Offer represent, together with the total of 12,723,923 shares in Neles otherwise acquired by the Offeror prior to the date hereof, approximately 32.82 percent of all issued and outstanding shares and votes in Neles.
The completion of the Tender Offer is conditional on, among other conditions, the valid tender of shares representing, together with shares otherwise acquired by the Offeror, more than fifty percent (50%) of the issued and outstanding shares and votes in Neles. As the said condition has not been fulfilled, the Offeror has decided not to complete the Tender Offer.”
Tom Erixon, president and CEO of Alfa Laval, commented: ”We regret that less than 50 % of the shareholders have decided to tender their shares. While the industrial logic and growth synergies between Neles and Alfa Laval represented a significant opportunity for both companies, we do not believe that Neles would be well served by having two large shareholders with conflicting strategic agendas for the long-term. For that reason, Alfa Laval has decided to withdraw the public tender offer. We now hope that Neles will find a different path to succeed in the global industrial flow control market.”