The mining division of German giant ThyssenKrupp (TK) in India will not be sold to Denmark’s FLSmidth as part of the 24-nation agreement, reducing the transaction’s value by about 14%.
On July 29, the Danish business, which is also active in India on its own, announced a 325-million-euro (Rs 2,818-crore) transaction. The agreement also included the selling of TK’s Indian mining operations.
FLSmidth said on Monday that it will remove the India company from the transaction, reducing the overall consideration (enterprise value) for TK Mining by 45 million euros (Rs 390 crore) to 280 million euros (Rs 2,428 crore).
The Danish conglomerate did not specify the reason for the move but hinted that the sale of the India company was part of an ongoing ‘negotiation’ because TK’s mining operations are part of a broader integrated organization that is not entirely controlled by the German conglomerate.
