RHI Magnesita N.V. (LSE:RHIM) agreed to acquire 65% stake in Jinan New Emei Industries Co. Ltd. for ¥293 million on January 13, 2023. Under the terms of the acquisition 80% of the initial consideration is payable on completion of the acquisition and the remaining 20% of the initial consideration is payable on the first anniversary of completion of the Acquisition.

The transaction is subject to competition authority clearance. The Acquisition will be funded from RHI Magnesita's existing committed and undrawn debt facilities and cash. Jinan New Emei recorded profit before tax of ¥33 million for the year ended December 31, 2021.

The transaction is expected to close in first half of 2023.