Metal makers Globe Specialty Metals, FerroAtlantica to merge
NEW YORK (AP) — U.S. metal producer Globe Specialty Metals Inc. said Monday that it is merging with European rival Grupo FerroAtlantica in an all-stock deal that will create a new company worth about $3.1 billion.
The deal is expected to close in the fourth quarter.
Globe Specialty Metals is based in Miami. FerroAtlantica is a subsidiary of privately-owned Spanish industrial company Grupo Villar Mir.
Grupo Villar Mir will own a 57 percent stake in the new company and Globe Specialty Metals shareholders will own a 43 percent stake.
Like Globe Specialty Metals, the new company’s stock will trade on the Nasdaq stock exchange. The two companies did not say what the new company will be named or what its ticker symbol will be.
The current CEOs of Globe Specialty Metals and FerroAtlantica, Jeff Bradley and Pedro Larrea Paguaga, will become co-CEOs of the new company.
Globe Specialty Metals, which has 11 factories and three mines around the world, makes silicon metals and alloys used in solar cells, computer chips and in other industrial and consumer products. FerroAtlantica has 15 factories and five mining sites.
Shares of Globe Specialty Metals rose 83 cents, or 5.4 percent, to $16.20 in premarket trading shortly before the market open Monday.