Vesuvius shares jumped more than 20% after the materials engineering group confirmed it was evaluating a latest takeover proposal from rival RHI Magnesita, following more than a year of approaches.

The latest proposal, received on 27 August, comprises 470p in cash and 0.28 new RHI Magnesita shares for every 10 Vesuvius shares, valuing the FTSE 250 firm at around 551p per share and approximately £1.37bn. Vesuvius shareholders would receive around 7.1 million new RHI shares and own about 13% of the enlarged group if the deal proceeds.

The proposal follows a series of rejected approaches from Vienna-based RHI Magnesita, beginning with a 448p-a-share cash proposal in September 2025. An all-cash proposal worth 550p per share was made in March 2026, followed by a June proposal also valued at 550p per share, partly comprising new RHI Magnesita shares. Vesuvius rejected the June proposal on 29 June.

The Vesuvius board is now evaluating the latest proposal, including its financial terms and execution risks, with its financial and legal advisers.

Shares rose around 21% to 451.8p in morning trading, having gained as much as 23% intraday.

Vesuvius said there was no certainty that a formal offer would be made. Under the Takeover Code, RHI Magnesita must by 5pm on 27 October either announce a firm intention to make an offer or confirm that it does not intend to do so, unless the deadline is extended with the takeover panel's consent.

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