Swedish high-technology engineering and steelmaking group Sandvik has announced that it has signed an agreement to divest its Mining Systems operations to the US-based private equity company CoBe Capital. Sandvik will maintain ownership of ongoing projects which are close to finalization. The closing of the transaction is expected during the fourth quarter of the current year, subject to the satisfaction of certain conditions precedent. The transaction entails a capital loss of SEK 800 million ($93.4 million) impacting the result of Sandvik’s discontinued operations for the third quarter of the current year.
On October 1, 2015, Sandvik announced its intention to sell its Mining Systems unit to focus more on its core operations, mining equipment and aftermarket offerings for both underground and surface mines, which Sandvik will continue to develop to ensure long-term value creation.