Champion Iron (CIA) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition expands presence in high-grade iron ore, diversifies product mix and geography, and aligns with decarbonization and European market growth strategies.

• Enhances position in the green steel supply chain with access to renewable power, low CO2 intensity, and proximity to European steel hubs.

• Both companies share similar cultures, values, and operational expertise, supporting integration and sustainable growth.

• Diversifies sales mix with established European and North African customer base and new product blends, including magnetite for specialty markets.

• Both assets are in tier-one jurisdictions, providing operational stability and growth opportunities.

Financial terms and conditions

• All-cash offer at NOK 79 per share, valuing the target at NOK 2,930 million (US$289–290 million).

• Funded through company liquidity, US$100 million private placement (3.5% discount to 20-day VWAP), and US$150 million term loan from Scotiabank.

• Private placement results in 5% dilution and 8.5% post-deal stake for the investor, who becomes the largest shareholder.

• Term loan matures in four years, repaid quarterly after a two-quarter grace period.

• Over 51% of shareholders have pre-accepted; closing expected in Q2 2026.

Synergies and expected cost savings

• Opportunities to optimize output, increase grade, blend products, and expand magnetite sales into premium and niche markets.

• Synergies expected in logistics, sales, customer engagement, and technical collaboration.

• Lower corporate tax and operating costs at Rana Gruber enhance free cash flow.

• Collaboration on capital return strategies and maintaining disciplined financial leverage.

• Expected near-term accretive impact on revenue, EBITDA, and cash flows per share.