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UPDATE 1-French tyre maker Michelin to buy Britain's Fenner for $1.7 bln

Mon, 19th Mar 2018 17:54

March 19 (Reuters) - French tyre maker Michelinhas agreed to buy British engineering company Fennerfor 1.2 billion pounds ($1.68 billion) to increase its offeringfor mining clients and expand its engineered materials business,it said on Monday.

The deal for 610 pence in cash for each Fenner share,represents a more than 30 percent premium to Fenner's closingprice of 466.6 pence on Friday.

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.($1 = 0.7123 pounds)(Reporting by Noor Zainab Hussain in BengaluruEditing by David Goodman)

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