Brazilian refractories producer Magnesita said this week it has reached a definite agreement with Intocast AG to sell its business in Oberhausen, Germany, to Intocast AG.
According to Magnesita, which has merged with RHI to create RHI Magnesita, Intocast AG will pay a combined EUR 20.3 million ($24.3 million) to acquire the magnesia carbon bricks business.
“The scope of the divestiture includes, but is not limited to, an offtake agreement to provide to Intocast AG the right to acquire up to 32,000 mt per year of sintered magnesia, for a period of 12 years, as required and under the terms established by the European Commission – Directorate General for Competition,” Magnesita said in a document filing.
The sale will be conditioned to customary closing conditions, and the deal is expected to be completed by Q4 this year.
The next step for the completion of the deal includes the admission of RHI Magnesita shares in the premium segment of the Official List on the Main Market of the London Stock Exchange, which is expected by October 2017.