Finland-based Ruukki Group said it will acquire Australia’s Sylvania Resources for €268m to create an integrated mine to metals platinum group metals (PGM) and ferrochrome company.

The deal is a part of Ruukki’s strategy to develop a fully integrated PGM ferrochrome business, Ruukki CEO Alwyn Smit said.

Under the deal, Sylvania shareholders will receive one Ruukki share for every 1.81 Sylvania shares held.

The proposed merger will enhance Sylvania’s ability to target additional resources and allow it to remain a low-cost producer, Sylvania non-executive chairman Richard Rossiter said.