Wedoany.com Report-Dec.29, It is reported that Champion Iron, based in Quebec, Canada, has reached an agreement to acquire all shares of Norwegian iron ore producer Rana Gruber ASA, with the transaction valued at approximately $289 million. The purpose of this acquisition among iron ore producers is to integrate the resources and market advantages of both parties in the high-quality iron ore sector.

The transaction will be completed through a combination of equity, debt, and equity financing. Some major shareholders and board members representing a majority stake in Rana Gruber have signed preliminary acceptance statements, and its board unanimously recommends that shareholders accept this acquisition offer. Champion Iron stated that the acquisition will bring it multiple strategic benefits, including access to long-term assets in a stable jurisdiction, utilization of renewable energy, and integration into a mature production system.

Rana Gruber is a long-established iron ore producer with an annual production exceeding 1.8 million tonnes in recent years. Its products include high-grade hematite concentrate and high-purity magnetite concentrate, primarily targeting the European market. David Cataford, CEO of Champion Iron, stated that this acquisition aligns with the company's strategy of supporting the steel industry through high-quality resources and is expected to have a positive impact on financial performance.

This transaction is expected to merge the assets of the two companies, forming a more diversified iron ore producer, and will help optimize the supply chain and consolidate its position in the European market.