Fenner extends reach in Australia

Conveyer belt maker Fenner is increasing its presence in the Australian mining market with the acquisition of two providers of conveyer maintenance services and products.It has exchanged contracts that to enter into a joint venture with Victoria-based Belle Banne and Queensland-based Leading Edge Conveyer Solutions that will lead to the acquisition of 100% of the companies' businesses and assets.Fenner said the acquisition will allow its subsidiary Fenner Dunlop Australia 'to extend its provision of conveyor engineering, conveyor related products and other value added services to the mining and industrial markets throughout Australasia.'The transaction and joint venture will be phased over six years. Fenner will initially acquire a joint controlling interest of 50.01% of the joint venture for AUD$21.95m (£13.7m), acquiring the remainder six years later. 'Belle Banne Victoria and Leading Edge Conveyor Solutions are two great companies with experienced and capable people which build on one of Fenner's core areas of expertise in the mining services sector,' said Fenner chief executive Mark Abrahams. 'It also gives Fenner a broader market reach, including the Victorian brown coal and energy industry.'