Sylvania Resources confirmed today (30th June) that it has agreed to merge with Finnish firm Ruukki Group in a deal worth €268 million (£228.3 million).

The Australian company, also in the process of taking over SA Metals and Great Australian Resources, will receive an offer of one Ruukki share for every 1.81 of its own shares.

Both of those miners, in which Sylvania has stakes of 12.55 per cent and 19.9 per cent respectively, have recommended that the all-scrip offer is accepted.

Furthermore, Sylvania revealed that the deal is not conditional on the completion of securing its two other targets and that a £1.47 million break fee is in place if it eventually collapses.

The Independent Directors of the firm are hoping that the merger will create an integrated producer of pgms and ferrochrome.

Sylvania also confirmed that Director Terry McConachie was not part of the decision-making process in relation to the offer due to his similar role at Ruukki.

Sources:

Sylvania in $466m merger with Ruukki (30/06/09)

RUUKKI GROUP AND SYLVANIA RESOURCES ANNOUNCE PROPOSAL TO MERGE TO CREATE AN INTEGRATED MINE TO METALS PGM AND FERROCHROME COMPANY (30/06/09)

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