Vesuvius shares soar as mulls latest RHI Magnesita takeover offer

Vesuvius PLC shares soared on Tuesday as it confirmed it is "carefully" evaluating a takeover offer from RHI Magnesita NV.

Vesuvius said it has received non-binding indicative proposals from RHI Magnesita since September 2025 for a possible takeover of the entire share capital of the company.

The company said the latest proposal received on August 27 was for 470 pence per ordinary share and 0.28 new RHI, Vienna-based refractory products maker, shares for every 10 Vesuvius shares, for a total value of 551 pence per Vesuvius share.

The offer values Vesuvius at around £1.37 billion.

Shares in the London-based engineering company were up 21% to 451.81 pence per share on Tuesday morning in London for a market cap of £1.15 billion.

Under the offer, Vesuvius shareholders would receive about 7.1 million new RHI shares and own about 13% of the enlarged share capital of RHI, following completion of the proposed transaction.

"The board of Vesuvius is evaluating the latest proposal carefully, including the financial terms and execution risk associated with the proposed transaction, together with its financial and legal advisers, and a further announcement will be made as appropriate," the company said.

RHI Magnesita has until October 27 to announce a firm intention to make an offer or walk away.

The latest proposal was the latest in several previous approaches from RHI, Vesuivius confirmed. The first, received in September 2025, was a cash offer of 448 pence per Vesuvius share, followed by further proposals in October, November and December.

In March, RHI submitted an all-cash proposal valued at 550 pence per Vesuvius share, following which Vesuvius granted RHI access to information to undertake confirmatory due diligence.

In June, RHI submitted a further proposal valued at 550 pence per Vesuvius share, comprising 454 pence in cash and 96 pence in new RHI shares. Vesuvius unanimously rejected the June proposal on June 29.

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