MFC Industrial Ltd (NYSE:MIL) entered into an agreement to acquire FESIL AS Group from Spencer Energy AS, Granhaug Industrier AS, Datum AS and other minority shareholders for approximately NOK 500 million on January 17, 2014. In addition to the purchase price, MFC will pay a royalty based on tiered ferrosilicon production at the Mo i Rana facility for two years, expected to equal approximately 2.9% of ferrosilicon revenue per annum at full production. The acquisition includes subsidiaries FESIL Rana Metall AS and FESIL Sales AS but excludes interests in FESIL Lilleby AS and Mo Industripark AS.

For the year ending 2013, FESIL posted revenues of NOK 2.9 billion. The transaction is subject to customary conditions, including, without limitation, the approval of the competition authorities of Germany, Austria and Ukraine and is expected to complete in the first quarter of 2014. Carsten Gromotke of Jones Day acted as legal advisor to MFC Industrial Ltd. Moelis & Company LLC acted as financial advisor for FESIL.