Activist investor Cevian Capital is backing a merger between Finnish auto parts maker Neles and Sweden-based industrial products maker Alfa Laval.
Cevian, which owns 10.9% in Neles and is the second-largest shareholder, has “irrevocably undertaken” to tender its shares to Alfa Laval, Neles said in a press release.
Alfa Laval, an industrial products provider that owns more than a dozen brands, agreed to buy Neles, a valve manufacturer, for 11.50 euros per share or around 1.7 billion euros. The deal represents a premium of 33% to the unaffected stock price.
Neles’ stock started trading just two weeks ago after a partial demerger from Metso completed. Metso’s other business, which focuses on mining solutions, agreed to merge with peer Outotec. Cevian has been an investor in Metso since 2005, according to Activist Insight Online.
Cevian has a seat on Neles’ nomination board, which in Finland is elected by the largest shareholders to select the board of directors.