Drilling and mining services contractor Ausdrill has confirmed it is in discussions to acquire equipment supplier Best Tractor Parts.
Ausdrill responded to media speculation today with an announcement that it was currently conducting due diligence investigations in relations to the companies and businesses within the BTP group, but had not yet made a decision on whether to proceed with the acquisition.
The company said It did not have exclusive rights of due diligence, and BTP may be in discussions with other parties.
BTP, which supplies parts for Caterpillar, Komatsu, Hitachi and Liebherr earthmoving equipment, is headquatered in Perth, with additional offices in Queensland and New South Wales.
The privately-owned firm was established in the mid-1980s and operated as a subsidiary of Emeco from 1987 to 1996, before BTP's current owners bought Emeco out.
Ausdrill said it would update the market if a binding agreement is reached.
“The price and terms of any potential transaction are still subject to negotiation and any transaction would be subject to a number of conditions precedent including arranging appropriate financing,” Ausdrill said in a statement.
“The Best Tractor Parts group is one of a number of potential transactions that Ausdrill in currently considering.”
At 2:00PM, WST, Ausdrill stocks were largely steady at $3.30.