Champion Iron Limited announced it has entered into a transaction agreement with Rana Gruber ASA under a conditional recommended voluntary cash tender offer to acquire all outstanding shares of Rana Gruber. The offer values Rana Gruber at USD 7.79 per share, implying a total equity value of approximately USD 289 mln.
Champion said the acquisition would add a long-life, high-grade iron ore asset in a stable jurisdiction with access to renewable power. Rana Gruber is a proven producer with continuous operations dating back to the 1960s and current output of more than 1.8 mln tons per year of high-grade iron ore, including recently upgraded 65pct Fe concentrate. The company also produces magnetite concentrate used in chemical and industrial applications, which has historically attracted premiums to the Platts IODEX 65pct Fe CFR China index. With renewable energy use, Rana Gruber ranks among the lowest carbon emitters per ton of iron ore concentrate globally.
Based in Mo i Rana, Norway, Rana Gruber operates underground mines and nearby open pits supported by extensive resources, rail connectivity to its coastal processing plant, and a dedicated port facility. Its customer base is primarily in Europe.
Champion said the transaction would expand its high-grade iron ore product portfolio, strengthen cash flow through competitive costs and proximity to customers, and create a more diversified producer with opportunities to optimize sales and logistics, particularly in Europe.
Champion operates the Bloom Lake Mining Complex in Quebec through its subsidiary Quebec Iron Ore Inc., producing premium 66.2pct Fe concentrate with the capability to reach 67.5pct Fe direct reduction quality. The company is also investing to upgrade part of Bloom Lake’s capacity to pellet feed with up to 69pct Fe. In addition, Champion holds a 51pct stake in the Kami Iron Mine Partnership and a portfolio of exploration assets in Canada’s Labrador Trough.
