MONTREAL – Champion Iron Limited announced on Sunday it has entered into an agreement to acquire Norwegian iron ore producer Rana Gruber ASA in a recommended cash tender offer worth approximately $289 million, securing financial backing from Caisse de dépôt et placement du Québec and Scotiabank.
The Canadian miner said it will offer 79 Norwegian crowns ($7.79) per share for all issued and outstanding shares of Rana Gruber, representing a total equity value of about 2.93 billion crowns. The offer has received unanimous support from Rana Gruber’s board and executive management, with shareholders owning roughly 51% of the company entering pre-acceptance agreements to tender their shares.
Champion plans to fund the transaction through a combination of equity, debt, and existing cash. This includes a $100 million private placement with long-term partner La Caisse and a fully committed $150 million term loan from Scotiabank.
“The proposed acquisition of Rana Gruber supports our vision to collaborate in decarbonizing the steel industry by leveraging Rana Gruber’s quality resources and proven iron ore operations,” said Champion CEO David Cataford.
The deal aims to create a larger, diversified high-grade iron ore producer, combining Champion’s Canadian operations with Rana Gruber’s long-life asset in Norway. Rana Gruber, which has produced iron ore since the 1960s and recently upgraded to 65% iron ore concentrate, operates with access to renewable power, resulting in low carbon emissions.
The offer is subject to customary conditions, including acceptance by owners of more than 90% of Rana Gruber’s shares. If successful, Champion intends to execute a compulsory acquisition of remaining shares. The offer period is expected to commence toward the end of January 2026, with closing targeted for the second quarter of 2026.