UK's Weir Closes Sale of O&G Arm

UK services group Weir has closed the sale of its oil and gas division to US Caterpillar, it said on February 1.

The deal was first announced in October last year and was approved by shareholders the following month. Since then, Weir's joint venture partner in Saudi Arabia-based Arabian Metals Co (Amco), local conglomerate Olayan group, has exercised its pre-emptive right to its 49% stake in the partnership.

Weir has therefore received $375mn from Caterpillar and will get a further $30mn on completion of the Amco deal, which it expects in the first half of this year. The divestment allows Weir to "fully focus on our role as a provider of premium technology to global mining and infrastructure markets," CEO Jon Stanton said in a statement.

Caterpillar has renamed Weir's oil and gas division SPM Oil and Gas. The business is headquartered in Texas and employs around 2,000 people.