Swedish engineering company Sandvik became the latest company looking to divest a portion of its oil and gas business during the economic downturn. The company is selling its exploration business for an undisclosed cost to M Group of Companies subsidiary Drillman, an Australian equipment provider and technical support company specializing in geotechnical, mineral exploration, horizontal, directional, and upstream gas drilling.
The divestment is in line with Sandvik’s plans to improve profitability and M Group’s long-term strategy to expand its international footprint.
The deal, which includes exploration rigs, consumables, production stock, and selected trademarks and patents, is subject to regulatory approval and is expected to close in the fourth quarter.