Swedish company Alfa Laval AB and Neles Corporation have entered into a combination agreement pursuant to which Alfa Laval will make a voluntary recommended public cash tender offer for all issued and outstanding shares in Neles that are not held by Neles or any of its subsidiaries.

In the tender offer, Neles’ shareholders will be offered a cash consideration of 11.50 euros for each issued and outstanding share in Neles, valuing Neles’ total equity at approximately 1,727,000,000 euros ($1.97 billion). The board of directors of Neles who participated in the decision-making have unanimously decided to recommend that the shareholders accept the tender offer.