Fortescue Metals (ASX:FMG)
is set to acquire UK-based Williams Advanced Engineering (WAE) for around $309.7 million.
The acquisition aims to develop battery electric solutions for Fortescue’s rail, mobile haul fleet and other heavy mining equipment to accelerate the rapid abatement of diesel usage. This is in line with plans to achieve the decarbonisation of the company's mining operations by 2030.
Fortescue said one of the first major projects to be developed will be a “world leading” battery-electric train concept.
WAE will be vertically integrated into Fortescue’s diversified resources and green energy business and will be managed via Fortescue Future Industries.
Fortescue will make the purchase from private equity firm EMK Capital and Williams Grand Prix Engineering, and the deal is expected to conclude by the end of March.
Shares in Fortescue Metals (ASX:FMG)
are trading 1.5 per cent lower at $20.63.
Image from: https://wae.com/