Austria’s RHI and Brazil refractories producer Magnesita announced this week the two companies will merge to create RHI Magnesita.
The new company will be established in the Netherlands and listed in London, a Magnesita press release said. The deal is expected to be completed in 2017. Until then, both companies will continue operating separately.
According to Magnesita, RHI agreed to sign a share purchase agreement with Magnesita’s controlling shareholders, GP and Rhône. Under the terms of the deal, RHI will acquire a controlling stake of “at least 46 percent,” but “no more than 50 percent” plus one share of the total share capital of Magnesita, which is pending RHI’s supervisory board approval.
Magnesita said the 46 percent stake purchase price will be paid in cash by RHI and will reach EUR 118 million and 4.6 million new shares to be issued by RHI Magnesita.
GP, Magnesita’s largest shareholder, will become a “relevant shareholder at RHI Magnesita and will be represented on its board of directors,” Magnesita said.
RHI is based in Austria, and claims to be a global supplier of high-grade refractory products, while Brazil-based Magnesita is a global provider of integrated refractory solutions, services and industrial minerals.
The completion of the deal is subject to approval by authorities, Magnesita said.