FAM, which manages the Wallenberg Foundations, is purchasing Sandvik’s golden nugget Process Systems (SPS) for five billion kronor after a tough bidding war. The sales price exceeded even Sandvik’s expectations.
SPS had a turnover of 1.7 billion kronor in 2016, and DI reports it has an operating margin of around 20%.
SPS is the first larger acquisition that FAM owns 100%. “We feel mature enough to work with a wholly owned subsidiary,” says Lars Wedenborn, FAM’s CEO.
According to business daily Dagens Industri, Sandvik is considering listing its Sandvik Material Technology (SMT) division, which produces advanced stainless steels, on the Stockholm Stock Exchange later this year.
Despite the challenges facing the steel industry, this might be the perfect time to take the division public, argues the newspaper, noting that the best performing large cap on the Stockholm market last year was SSAB, with a gain of over 100 per cent.
Following Sweden’s cancellation of the defence co-operation agreement with Saudi Arabia, Foreign Minister Margot Wallström and Enterprise Minister Mikael Damberg have invited some 40 business leaders to a meeting on Thursday to discuss how export companies can develop their business in the Gulf States.
Dagens Industri (DI) reported last week the diplomatic row has meant that a number of companies have seen contracts being terminated. However, Swedish industrial group Sandvik has not been affected, according to chief executive Olof Faxander, who have been invited to the meeting, but who is unable to attend. He says to the business daily: “We believe that trade, openness and a presence in many countries around the world leads to economic development and improves conditions in those countries”. He expects Swedish firms will continue to develop their businesses in the region, which offers significant opportunities for growth.