KNM to buy German engineer for RM1.7b

MALAYSIAN energy services firm KNM Group will buy German engineering firm Borsig BBetv for RM1.67 billion (US$522 million) as it looks to move up the value chain and attain economies of scale, KNM said today.Unlisted, Berlin-based Borsig specialises in component and process equipment and plant construction. It had pre-tax profit of 36.9 million euros (US$24.3 million) in the financial year to December 31, on consolidated turnover of 160.2 million euros, KNM said.Trade in shares of KNM, which makes process equipment for the energy and petrochemical industries, was halted today for the news. The stock last traded at RM6.10.“Our intention is to further grow the Borsig group by expanding its market reach and market share,” KNM managing director Lee Swee Eng said in a statement.KNM has a market value of about RM6.4 billion, and has manufacturing facilities in countries such as Australia, Brazil, Canada, China and Italy. - Reuters