Maersk's top shareholder to buy Sweden engine part maker for $843 million

By Steve Goldstein

Investment group says Concentric can expand into energy storage and datacenters

The lead shareholders of shipping giant AP Moeller-Maersk agreed to buy Swedish engine part maker Concentric for 8.58 billion Swedish krona ($843 million).

Concentric shares (SE:COIC) surged 58% to 225.50 krona, after the 230 krona per share bid that was unanimously backed by the board.

Ernst & Young also gave the company a fairness opinion, and shareholders who hold 17% of the company also backed the offer.

"Concentric is a global leader in pump, fan, and thermal management solutions for the commercial vehicle market, and is uniquely positioned to actively support its customers through the energy transition. Furthermore, Concentric's innovative solutions are well positioned for expansion into new and adjacent markets such as energy storage and datacenters," said a statement from Jan Thorsgaard Nielsen, the chief investment officer at A.P. Moeller Holding.

He said Concentric faces significant investments that will require both capital and patience from all stakeholders.

"We believe this combined with our long-term investment horizon makes us good owners of Concentric in the next phase of its journey," he said.

A.P. Moeller Holding saw a return of equity of 44.5% in 2022 and 38.1% in 2021 thanks to the pandemic's effect on shipping. It holds about 40% of A.P. Moeller-Maersk (DK:MAERSK.B).

It has previously identified energy transition as one of its four major investment themes, along with global trade, water and waste recovery and demographic and societal changes.

-Steve Goldstein

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08-29-24 0405ET

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