Dealers expect little change in UK from Sisu/Partek merger
By Andy Collings
SISU, the Finnish manufacturer of Valmet tractors, has a new owner.
The predominantly state-owned company has announced a merger with Partek, another Scandinavian company involved in machinery production – the HIAB crane is just one of their products.
But it is a move which will not take place overnight; completion is not expected until the end of the year. Transactions are complex and include both acquisition and divestment of shares as the two companies rearrange their affairs to accommodate the merger. Aker, Parteks principal Norwegian shareholder, for example, is being bought out of the business.
The result should see the Finnish government retaining 30% of shares of a new company which will become the 10th largest in Finland. Net sales will amount to FIM12bn (£1.6bn) from a business involved 60% in metal engineering and 40% in minerals, insulation and various other interests. Tractor sales are responsible for about a fifth of total sales.
For the UK market, a change of owners is not expected to alter marketing arrangements. Ray West, managing director of UK operations based at Runcorn, Cheshire, comments: "When we became part of the Sisu group a few years ago, there was little change and we do not expect there to be any significant changes this time.
"Overall, the merger must be seen as a good move for the company. It will make us financially stronger, which should be reflected in increased R&D investment and a larger range of tractors." *
Valmets career moves up a gear after the merger of Sisu and Partek.