Swedish OEM Sandvik’s initial plans to offload its unprofitable Mining Systems business have failed, with the firm saying talks had stalled.
Sandvik had plans in place to sell its Mining Systems division to private equity firm CoBe Capital, but on January 18 announced it would be forced to continue to search for different interested buyers.
“The [original] deal will not be finalised according to the original plan as all conditions for closing have not been met,” the company said.
“The process to exit from the Mining Systems business continues with different interested parties.
“Mining Systems remains reported as discontinued operations in Sandvik’s financial statements.”
Sandvik president and chief executive Björn Rosengren was not happy with the development.
“I am disappointed that we have not been able to close the transaction as planned,” he said.
“However, we relentlessly progress to find a solution for our exit from the project business Mining Systems.”
The Stockholm-based OEM also announced this week that its president of Machining Solutions, Jonas Gustavsson, would leave the company by the middle of the year, to become president and chief executive of Swedish engineering and consulting firm ÅF.