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Finance

UK's Vesuvius weighs Austria-based rival RHI Magnesita's £1.37 billion bid; shares jump

Published by Global Banking & Finance Review

Posted on September 29, 2026

2 min read

· Last updated: September 29, 2026

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Vesuvius Weighs £1.37bn Bid from RHI Magnesita, Shares Soar 31%

Vesuvius Faces Takeover Bid and Market Reaction

Sept 29 (Reuters) - British engineering firm Vesuvius said on Tuesday it was assessing a £1.37 billion ($1.81 billion) cash-and-stock bid from Austria-based RHI Magnesita N.V, sending shares up 31%.

Details of the RHI Magnesita Bid

The bid comes after Vesuvius rejected a series of proposals from RHI Magnesita over the past year. The latest proposal, valuing Vesuvius at 551 pence per share, represented a 47% premium to its closing price on Monday.

Share Price Movements

Vesuvius' stock was last up 23% at 461 pence on Tuesday, on track for its biggest intra-day gain since late 2008. RHI's London-listed shares fell 3%.

Shareholder Support

The UK firm said the latest proposed bid received support from Cevian Capital, its largest shareholder, based on LSEG data.

Background on the Companies

Business Focus

Both Vesuvius and RHI Magnesita make heat-resistant materials that line furnaces, ladles and vessels used in extreme high-temperature industrial processes such as steelmaking.

Recent Performance and Challenges

Vesuvius, in its first-half results in July, said its steel division lost market share as it has been grappling with rising costs, operational challenges and supply chain issues in North America.

Company Origins

The company traces its origins to 1916 in Pittsburgh, when the Arensburg brothers and their friend Arthur Jackman produced clay graphite crucibles for melting steel to capitalise on the American steel industry boom.

Additional Information

($1 = 0.7557 pounds)

(Reporting by Simone Lobo, Yamini Kalia and Yadarisa Shabong in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)

Key Takeaways

  • Vesuvius shares soared ~31 % intraday—the biggest gain since 2008—amid takeover buzz and backing from its largest investor Cevian Capital
  • RHI Magnesita, the world‑leading refractory firm, has a vertically integrated model and broad global footprint including raw‑material mining and recycling capabilities (investegate.co.uk)
  • The consolidation bid reflects intensifying competition in the refractory market, where both companies vie across steel, foundry, cement, and non‑ferrous sectors (marketsandmarkets.com)

References

Frequently Asked Questions

What is the value of RHI Magnesita's bid for Vesuvius?
RHI Magnesita has made a £1.37 billion cash-and-stock offer for Vesuvius.
How did Vesuvius shares react to the takeover bid?
Vesuvius' shares jumped 31% following the announcement of the bid, marking their largest intra-day gain since 2008.
What premium does the current bid represent over Vesuvius' last closing price?
The latest proposal values Vesuvius at a 47% premium to its previous closing price.
Which major shareholder supports RHI Magnesita's bid?
Cevian Capital, Vesuvius' largest shareholder, supports the latest proposed bid.
What do Vesuvius and RHI Magnesita manufacture?
Both companies produce heat-resistant materials for use in high-temperature industrial processes such as steelmaking.

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