[Australian Miner Champion Iron to Acquire Norwegian Iron Ore Producer Rana Gruber]

On December 21, Australian iron ore producer Champion Iron Limited announced that it had launched a cash tender offer for Norwegian iron ore producer Rana Gruber, planning to acquire all of its issued shares at a price of 79 Norwegian kroner per share (approximately $7.4) for a total transaction value of about $289 million. The transaction aims to expand Champion Iron's iron ore business footprint from North America to the European market through mergers and acquisitions.

The announcement revealed that this acquisition involves a relatively complex and diversified financing arrangement. Among them, Caisse de dépôt et placement du Québec will provide Champion Iron with approximately $100 million in equity financing; Scotiabank will provide about $150 million in debt financing. Additionally, Champion Iron will utilize the company's existing cash reserves of approximately C$325 million (about $240 million) as a supplementary funding source. According to Norwegian securities law, the tender offer period is expected to commence at the end of January 2026 and, barring unforeseen circumstances, the transaction is anticipated to be completed in Q2 2026.

Rana Gruber is the only operating iron ore producer in Norway, primarily producing high-grade iron ore concentrates with a current iron ore grade as high as 65%. Its annual production exceeds 1.8 million tonnes, and its products are widely supplied to European steel and related industrial customers. In recent years, the company has continuously advanced upgrades to its production systems and optimization of product quality, holding a certain influence in the European high-grade iron ore market.