The new company to be set up, RHI Magnesita, will have a foothold in Europe and Latin America and control the sourcing of key raw materials - such as magnesite-based DMB, CCM and DBD - used in refractory production, ensuring global supply with over 50 facilities.

Leading refractory producers, Austria’s RHI AG and Brazil-based Magnesita GP, have agreed to a merger to create a new entity, RHI Magnesita, to be based in the Netherlands and listed on the London stock exchange.

RHI will acquire a controlling stake of Magnesita – estimated at a 46% share but no more than 50% – from its current majority shareholders, GP Investments and Rhône, which will be payable through a cash transaction of €118m ($132.3m) and 4.6m shares to be issued by the new company.