October 6, 2016 / 9:17 AM / in a year

RHI says London listing was Magnesita precondition for merger

VIENNA (Reuters) - Brazilian refractories materials maker Magnesita (MAGG3.SA) made a London share listing a precondition for its takeover by Austrian peer RHI RHIV.VI, but the group had to find a place other than London for the combined company’s headquarters, due to the UK vote to leave the European Union, RHI’s chief executive said on Thursday.

The logo of Austrian specialised fireproof materials maker RHI is pictured at an office park building where its headquarters is located in Vienna, Austria, February 9, 2016. REUTERS/Heinz-Peter Bader

Instead the RHI Magnesita company will be established in the Netherlands to remain subject to European merger rules, while its shares will be listed in London, Wolfgang Ruttenstorfer said in a conference call.

“Had there been no Brexit, I suppose that the ... holding company would have been established in London,” he said. “Because there is Brexit, however, and the European merger directive is perhaps no longer applicable in London at the closing in 18 months, it was the task to find a place other than London.”

Reporting by Kirsti Knolle; Editing by Greg Mahlich

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below