RHI Magnesita to acquire Indian refractory business of Dalmia
RHI Magnesita, the leading global supplier of refractory products, today announces the acquisition of the Indian refractory business of Dalmia Bharat Refractories Ltd ("DBRL").
RHI Magnesita, the leading global supplier of refractory products, today announces the acquisition of the Indian refractory business of Dalmia Bharat Refractories Ltd ("DBRL").
DBRL is one of India's leading refractory players and a long-term trusted partner to customers in the region.
DBRL will transfer its Indian refractory business to Dalmia OCL (DOCL). Under the terms of a Share Swap Agreement, RHI Magnesita will acquire all outstanding shares in
DBRL will transfer its Indian refractory business to Dalmia OCL (DOCL). Under the terms of a Share Swap Agreement, RHI Magnesita will acquire all outstanding shares in
Dalmia OCL (DOCL) in exchange for 27 million new shares in RHI Magnesita India Limited. Based on the issuance price of RHI Magnesita India Limited at ₹632.5029 per share, the Share Consideration had a value of approximately ₹1,708 Cr (€208 million).
RHI Magnesita will consolidate DOCL's earnings and approximately ₹ 443 Cr (€54 million) of net debt held by DOCL.
The acquisition will significantly increase RHI Magnesita's presence in the fast-growing Indian refractory market, with forecast steel production growth in India
The acquisition will significantly increase RHI Magnesita's presence in the fast-growing Indian refractory market, with forecast steel production growth in India
of 12% in 2022 & a 7-8% compound annual growth rate until 2030. Through the consolidation of DBRL's production into RHI Magnesita's existing operations, significant network optimisation synergies will be captured. The co employs approximately 1,200 people in India & has
production capacity of more than 300,000 tons of refractory annually, from five refractory plants and raw material sites. The acquisition will add production capacities in important industrial regions in the south & west of India where RHI Magnesita currently has no assets.
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