RHI Magnesita India Shares Surge 6% as CCI Clears Rhone Capital's Stake Acquisition

7 Sep 2023 , 12:09 PM

RHI Magnesita India Ltd saw a 6% surge in its shares on September 7 after the Competition Commission of India (CCI) gave the green light to Rhone Capital’s proposed acquisition of a 29.9% stake in RHI Magnesita NV.

Ignite Luxembourg Holdings, owned by US-based Rhone Capital, received CCI approval to acquire up to 29.9% of RHI Magnesita NV. RHI Magnesita NV operates mainly through its subsidiary, RHI Magnesita India Ltd, specializing in refractories and related products. The CCI is vital in overseeing such acquisitions to ensure fair competition and prevent unfair business practices.

RHI Magnesita NV, through its subsidiary RHI Magnesita India Ltd, offers products such as isostatically pressed continuous casting refractories, slide gate plates, nozzles, and well blocks. Additionally, RHI Magnesita India Ltd declared a dividend of Rs 2.50 per share, scheduled for distribution on October 28th.

RHI Magnesita specializes in manufacturing ceramic linings and brick linings used in steel plant furnaces and cement plant furnaces, holding a substantial global market share of approximately 35% and an impressive 40% share within India. These developments signify a significant move in the refractories and related industries sector, with investors closely monitoring the company’s performance and strategic decisions following CCI approval.

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