Weir Group PLC to exit oil & gas division in US$405mln deal

PLC () announced it has agreed the all-cash sale of its entire oil & gas division to  for US$405mln (£314mln).

The engineering company said it is focusing on markets underpinned by global demographic trends, such as the transition to a low carbon society and the adoption of new technologies in the mining industry.    

READ: Weir refinances bank facilities, says mining markets robust despite pandemic disruption

The transaction will allow a US$70mln US cash tax benefit to be realised over the medium term.

The FTSE 250 group expects the deal to complete by the end of 2020, assuming normal regulatory clearances and shareholder approval.

Peel Hunt noted the agreement “is transformational and turns Weir into a pure-play mining equipment business”. 

Shares jumped 14% to 1,456.5p early on Monday.