March 19 (Reuters) - French tyre maker Michelinhas agreed to buy British engineering company Fennerfor 1.2 billion pounds (
The deal for
Fenner's directors consider the terms of the deal to befair and reasonable and intend to unanimously recommend itsshareholders vote in favour of the acquisition, Michelin said.
"The acquisition will enable Michelin to accelerate itsgrowth in this (high-technology materials) area, and tostrengthen its position as a key player in the recovering miningmarkets," said Michelin CEO Jean-Dominique Senard.
Michelin expects the deal to add to its earnings in thefirst full year after completion of the deal.
The French company said it does not intend to dispose of any"material part" of Fenner's business but would look to delist itfrom the London Stock Exchange.Michelin added that it does not expect to cut jobs at Fenner.Morgan Stanley acted as financial adviser to Michelin,while Rothschild advised Fenner.(
