Weir Group, the Glasgow-based mining technology company, is acquiring Australia firm Mining Software Holdings, known as Micromine, in a deal worth £657 million.

Micromine is a top-tier global software provider to the mining industry, with comprehensive solutions across the upstream mining value chain.

The Perth-based company supports critical mining operations from exploration through mine design and planning, operational scheduling and mining operations in hard ore, soft ore and underground applications.

Shares in Weir closed 144p (6.3%) higher at 2430p, a 12-month high that values the company at £6.3 billion.

Weir chief executive Jon Stanton said: “The acquisition of Micromine is a significant step in our strategy of investing in technology to accelerate smart, efficient and sustainable mining.

“The combined force of Micromine and Weir will create a sector-leading globally scaled platform to optimise performance across the mining process.

“In Micromine, we are adding an established, high-quality business and proven performer that is complementary to Weir’s aftermarket-focused business model and current digital solutions. This acquisition provides a compelling opportunity for strong value creation in the immediate and longer term. 

“The Micromine team are experts in their field and share Weir’s innovative mindset and customer focus. We look forward to welcoming them to Weir and working with them to provide customers with unparalleled technology and insights to enhance their operations.

“Today is an important and exciting day. Combining Weir’s engineering technology expertise and customer networks with Micromine’s leading software solutions and diversified customer base will allow us to further harness digital technology to drive productivity and sustainability for the global mining industry.”

Andrew Gray, managing partner of Potentia Capital, said: “We are thrilled that Micromine will be joining the Weir family of businesses which we think is the perfect home for the business. I feel the addition of Micromine’s solutions, in particular its suite of AI offerings, will allow Weir’s customers to rapidly capitalise on their digital futures.”

The deal is expected to complete in Q2 and was announced alongside figures showing a 4% rise in annual adjusted pre-tax profit to £428m from £411m.

“As we go into 2025, we have a growing pipeline of project bids, a strong order book, and see positive aftermarket demand drivers in mining.” said Mr Stanton. “For the full year, we expect to deliver growth in revenue, operating profit and margins.

“We expect our Performance Excellence programme will deliver incremental savings of £20m in 2025, and cumulative savings of £80m through 2026, moving our operating margins sustainably beyond 20%.”

Weir no longer has manufacturing activities in Scotland with all its 150 employees north of the border employed in its head office and advanced research centre. 

Markets rise

The FTSE 100 yesterday shrugged off global market jitters over Donald Trump’s tariff plans to close at a record high, climbing 0.6 per cent, or 53.53 points, to 8809.74.

Germany’s Dax, France’s Cac 40 and Italy’s FTSE MIB all ended the day higher while ongoing uncertainties around potential trade tariffs and a tumultuous meeting between US president Donald Trump and Ukrainian president Volodymyr Zelensky weren’t enough to dent risk appetite in afternoon trade.

The Dow finished 1.4% higher, while the S&P 500 and Nasdaq both jumped 1.6%.

Mr Trump warned that he still could impose a 25% levy on imports from the EU and had not entirely ruled out taxes on British imports.

The US president also said this week that a 25% tax on Canadian and Mexican imports would come into effect on 4 March and warned of extra tariffs of 10 percentage points on Chinese goods.

On the London market, British Airways owner IAG said revenues for 2024 comfortably beat City analysts’ expectations and the company told investors to expect more.

“We are delivering world-class margins and returns,” Luis Gallego, chief executive, said. “Strong customer demand continues.”

IAG reported operating profits up 22% to €4.28 billion on revenues 9% higher at €32.1 billion.

Shares in the company were trading below £1 three years ago and last night closed 13½p, or more than 4% higher at 352.25p to value the company at £17 billion.