June 28, 2017 / 4:46 PM / a year ago

UPDATE 1-EU conditionally clears Austria's RHI to buy Magnesita

(Adds details on EU conditions)

BRUSSELS, June 28 (Reuters) - The European Commission gave Austrian industrial materials maker RHI clearance on Wednesday to buy Brazil’s Magnesita Refratarios after the company agreed to divest some businesses in Europe.

RHI, which specialises in fireproof industrial materials, agreed to sell its production sites in Marone in Italy and Lugones in Spain as well as Magnesita’s plant in Oberhausen, Germany, within six months.

“These commitments fully remove the overlap between RHI and Magnesita in the markets where the Commission had identified competition concerns,” the Commission said in a statement.

RHI agreed in October to take over the Brazilian company in a $500 million deal to create a global player.

RHI said its sites in Marone and Lugones brought in around 50 million euros ($57 million) in revenues in the financial year 2016, representing roughly 3 percent of RHI’s total revenue that year.

“RHI and Magnesita are currently holding intensive talks with several potential buyers. All interested parties intend to take over the production sites and the related business for the long term and to develop them further,” RHI said. ($1 = 0.8794 euros) (Reporting by Robert-Jan Bartunek, additional reporting by Shadia Nasralla in Vienna, editing by Julia Fioretti and Susan Fenton)

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