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Company Announcement No. 7 29 July 2021 FLSmidth to acquire thyssenkrupp's Mining business - creating a global industry leader in mining technology FLSmidth and thyssenkrupp Industrial Solutions AG ( a fully owned subsidiary of thyssenkrupp AG , " thyssenkrupp " ) have reached an agreement that FLSmidth will acquire thyssenkrupp's Mining business¹ ( TK Mining ) for a total consideration ( enterprise value ) of EUR 325 million , corresponding to approximately DKK 2.4 billion . Closing of the transaction is expected in H2 2022 and is subject to customary approvals from relevant authorities . TK Mining is a leading full - line supplier of solutions for mining systems , material handling , mineral processing and services , which is highly complementary to FLSmidth's offering . TK Mining has an asset light business model and is present in 24 countries with engineering and global service centres , and has close to 3,400 employees . In 2020² , revenue was EUR 780 million ( approximately DKK 5.8 billion ) with around one - third deriving from services . The business delivered a high single - digit negative EBIT margin and is expected to return to profitability by year 2024 based on the ongoing restructuring undertaken by TK Mining . In addition , the combination with FLSmidth offers large cost synergies , creating significant shareholder value . A combination of the two companies will create a leading global mining technology provider with operations from pit to plant , extending the strategic customer relationships with a complementary product offering and customer base as well as improved geographic coverage . Furthermore , TK Mining's extensive active installed base , together with FLSmidth's strong existing service setup , will provide additional aftermarket opportunities , while the joint R & D capabilities and combined portfolio will enable accelerated innovation in digitalisation and Mission Zero solutions . The mining industry is characterised by sound fundamentals and a positive outlook , based on underinvestment over the past decade and increasing demand due to the clean energy transition . The timing of this acquisition positions FLSmidth to capture enhanced value from the mining growth cycle underway . Thomas Schulz , Group CEO of FLSmidth , said : " TK Mining and FLSmidth are a perfect match , and I am proud to announce this agreement to join forces . This is a truly transformational deal allowing us to accelerate our growth ambitions in mining by creating a stronger talent pool and one of the world's largest and strongest suppliers to the mining industry . Our complementary customer base and improved geographic coverage will offer a strong value proposition to our customers . There is a significant opportunity in transforming TK Mining towards FLSmidth's business mix and model in which higher margin service business makes up about 60 % of revenue . I look forward to welcoming TK Mining's management team and talented staff to our organisation . " Martina Merz , Group CEO of thyssenkrupp AG , said : " FLSmidth is an excellent owner and a very good new home for our mining activities . The companies have a strong cultural fit and are ¹ It is being negotiated if thyssenkrupp's Indian mining business will be part of the transaction 2 September 2020 FYE