According to the plans, NewCo will focus on mining/civil engineering customers and include the existing mining and rock excavation technique business area and the construction tools division with related service operations.

Atlas Copco will focus on industrial customers and include the compressor technique, vacuum technique and industrial technique business areas plus the portable energy division, including service and the specialty rental division.

Hans Stråberg, chair of the board of directors of Atlas Copco, said: “The board and management believe that long-term shareholder value will be created by splitting the group into two separate companies.

“Both businesses are global leaders in their respective fields and will benefit from a more focused management responsibility.”

Ronnie Leten, president and CEO of the Atlas Copco Group, commented: “The two businesses have different demand drivers and demand characteristics.

“A split will increase their respective abilities to add value to customers, grow the business and attract talent.”

Atlas Copco stated that if the shareholders decide in favour of the proposal, the split of the group is planned to be done through a share distribution, whereby Atlas Copco’s shareholders will receive shares in NewCo in proportion to their existing shareholding.