The German Antitrust Authority has given AIM-listed Sierra Rutile and Australian mineral sands miner Iluka Investments clearance to merge – the second of two key conditions to the merger which had to be satisfied for the merger to go ahead.
The boards of Sierra Rutile and Iluka Investments said the merger is now expected to become effective and closing is expected to take place on 29 November this year.
The first condition to the merger was met when Sierra Rutile’s shareholders voted in favour of the resolutions required to approve the merger.
At the closing of the merger, Iluka will provide shareholders with additional information related to the merger and integration priorities.
The merger between Sierra Rutile and Iluka Investments was first announced at the end of October.
As part of the acquisition, Sierra Rutile shareholders would receive 36 pence cash for each Sierra Rutile share.
Iluka Resources also agreed to also assume Sierra Rutile’s debt of approximately US$60 million.
The acquisition is expected to approximately double Iluka’s rutile resource base and secure ownership of an operation, with a long history in the minerals sands industry that currently produces approximately 130 000 t of rutile, with expansion potential up to 240 000 tpa.