RHI Magnesita launches £1.37bn takeover bid for Vesuvius

RHI Magnesita, an Austrian competitor, has submitted a £1.37 billion takeover proposal for the British engineering firm Vesuvius. The offer consists of a combination of cash and stock, valuing Vesuvius at 551p per share, which represents a 47 per cent premium over its previous closing price.

Under the terms of the proposal, Vesuvius shareholders would receive 7.1 million new RHI shares, granting them a 13 per cent stake in the combined entity. Shareholders would also remain entitled to a previously announced 7.1p dividend. Following the announcement, Vesuvius shares surged 26 per cent in London trading.

This marks the third takeover attempt by the Vienna-headquartered RHI Magnesita, following previous bids in March and June that were rejected by Vesuvius. The activist investment firm Cevian, which holds a 14 per cent stake in Vesuvius, has expressed support for the proposal. Both companies specialize in heat-resistant refractory materials used in high-temperature industrial processes such as steelmaking.