Champion Iron Launches $289M Cash Offer to Acquire Rana Gruber

Champion Iron’s Strategic Acquisition

Champion Iron Limited has announced a recommended voluntary cash tender offer to acquire 100% of Rana Gruber ASA, a Norwegian high-grade iron ore producer. The all-cash offer values Rana Gruber at NOK 79 per share, translating to an equity value of approximately US$289 million. This move marks a significant step for Champion as it seeks to expand its footprint in the global iron ore market, particularly targeting the growing demand for sustainable, low-carbon steelmaking inputs.

The acquisition is structured to be funded through a combination of Champion’s existing cash reserves, a US$100 million private placement with La Caisse de dépôt et placement du Québec, a long-standing financial partner, and a US$150 million term loan commitment from Scotiabank. This financing approach is designed to maintain Champion’s disciplined financial leverage while supporting growth.

Complementary Assets and Market Positioning

Rana Gruber operates a mine in Mo i Rana, Norway, producing approximately 1.8 million tonnes per annum of iron ore concentrates, including hematite and magnetite products. The company boasts one of the lowest carbon intensities in the global iron ore industry, leveraging renewable hydropower and responsible tailings management. Strategically located near European steel hubs, Rana Gruber is well positioned to serve the continent’s expanding green steel initiatives, including direct reduced iron (DRI) and electric arc furnace (EAF) projects.

Champion’s acquisition of Rana Gruber is expected to create a larger, geographically diversified company with enhanced capabilities to supply high-grade iron ore to the green steel supply chain. The combined entity will benefit from complementary technical expertise, operational synergies, and a broader customer base, particularly in Europe where regulatory measures like the Carbon Border Adjustment Mechanism are reshaping steel production economics.

Financial and Strategic Outlook

The transaction is unanimously supported by Rana Gruber’s management and board, with shareholders representing approximately 51% of shares having already committed to pre-accept the offer. Completion is contingent upon customary conditions, including Champion acquiring over 90% of Rana Gruber’s shares, and is anticipated around the second quarter of 2026.

Financially, the deal is expected to be accretive to Champion’s revenue, EBITDA, and operating cash flow in the near term. The combined company will maintain a responsible financial leverage ratio, supported by the committed financing and existing liquidity. This acquisition aligns with Champion’s broader strategy to decarbonize steelmaking by leveraging high-grade iron ore expertise and expanding its global presence.

Sustainability and Industry Impact

Champion and Rana Gruber together represent some of the most sustainable producers in the iron ore sector, with Rana Gruber’s low carbon footprint and use of renewable energy complementing Champion’s existing assets. The acquisition enhances Champion’s ability to supply the growing green steel market, which is receiving significant subsidies and regulatory support in Europe. This positions the combined company to capitalize on the shift towards cleaner steel production technologies.

Looking ahead, Champion plans to continue evaluating growth opportunities, including the development of its Kami Project in Canada and leveraging Rana Gruber’s Nordic expertise. The company also emphasizes a balanced approach to growth, maintaining a commitment to sustainable operations and positive community impact.