Glasgow-based global engineering giant Weir Group said on Tuesday the sale of its oil and gas division to Caterpillar Inc. for an enterprise value of $405 million is now expected to close in the first quarter of 2021. 

“As previously announced, completion of the transaction by the end of this year was dependent on the receipt of all regulatory clearances,” said Weir.

“While the majority of these clearances have been received, including those from the United States, a small number remain outstanding, with the timing of some standard processes being delayed by Covid-19 restrictions.”

Weir Group has 13,000 employees in over 60 countries. Weir shares have risen about 25% over the past year to give the firm a stock market value of roughly £5 billion.

Weir announced the sale of its oil and gas division to Caterpillar on October 5 “subject to customary working capital and debt-like adjustments at closing.”

News of the sale followed the announcement in February 2020 that Weir would seek to maximise value from its oil and gas division as it continued its strategic transformation into a “premium mining technology pure play.”

The sale was approved by shareholders at a general meeting on November 23, 2020, with 99.97% of the shares voted being in favour of the transaction. 

Weir Oil & Gas has been reported under discontinued operations since the sale agreement was announced.