On paper this sounds like a fair method to determine the shares of each company in the future merged company. Of course the devil is in the detail and we won't get to see a detailed calculation, which would have to contain all assumptions on costs, production, forecasts sales prices for many years into the future etc. and also how exactly the synergies will change the numbers. This would be difficult to publish without revealing confidential information. During the merger call they went a little more into detail about how they discussed this, but nothing too revealing. It should be expected that the split was not determined by simply putting the current market caps of each company in relation to each other.
This is the current share price reaction in Germany on tradegate exchange in €. It is 14.21 Australian dollars per share.
