Australian platinum group metals miner Sylvania Resources has terminated its proposed merger with Finnish metals supplier Ruukki Group.
An agreement struck in June this year saw Ruukki fully acquiring Sylvania in a 1 for 1.81 all-share deal totaling around US$400 million, however, due to difficulties experienced in the merger process Sylvania last Friday announced its termination through a mutual agreement.
Sylvania director Grant button told MINING DAILY that the difficulties faced were related to cross border issues and exchange rates, which combined to make the merger process difficult.
Button explained that the motivation for the merger was combining Sylvania’s metal assets and Ruuki’s furnaces. However, now both companeis have stepped away from the merger they are looking at a joint venture on Ruuki’s 12MW AC furnace in South Africa.
“This is the best way to go forward,” he said.
There is no break fee payable by either party in regards to the termination.
However, while the two are no longer looking to merge, Sylvania and Ruukki are continuing to evaluate possible alternatives for co-operation in the future, but according to the companies talks are still at a preliminary stage.