Oct 5 (Reuters) - Rhi AG
* Rhi AG says have reached an agreement to combine the operations of Rhi and Magnesita to create refractory company to be named Rhi Magnesita
* Transaction will be financed by additional debt and issuance of 4.6 to 5.0 million Rhi Magnesita shares to Magnesita's controlling shareholders
* Rhi expects combined company to generate fully consolidated revenues of 2.6 billion euros to 2.8 billion euros by 2020
* Rhi AG says board has agreed to sign share purchase with Magnesita of a controlling stake of at least 46%
* Rhi AG says purchase price for 46% stake will be paid in cash amounting to 118 million euros and 4.6 million new shares to be issued by Rhi Magnesita
* As result of transaction, Rhi's mid-term financial targets will surpass Rhi's current targets as communicated in Rhi's strategy 2020
* The place of effective management of Rhi Magnesita will be Austria
Source text for Eikon: ID:nNDL7r7m64