India's Sterlite buys Asarco for $1.7 billion | business | Hindustan Times
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India's Sterlite buys Asarco for $1.7 billion

business Updated: Mar 07, 2009 15:50 IST

India's Sterlite Industries announced on Saturday it would buy Asarco LLC, a bankrupt US copper mining producer, for 1.7 billion dollars.

The purchase by Sterlite, India's largest non-ferrous metals and mining company and a unit of London-listed metals giant Vedanta Resources, is part of a move to become a diversified copper producer, a company statement said.

Asarco, formerly known as American Smelting and Refining Co., is the third-largest copper producer in the United States.

"Sterlite has signed a new agreement with Asarco for purchase of substantially all the operating assets of Asarco," said Sterlite Industries in the statement.

The price for Asarco is less than half the original 2.6-billion-dollar bid that Sterlite abandoned last year after saying the cost was too high with copper prices tumbling on global commodity markets.

The purchase of the bankrupt copper mining firm, which sold 237,000 tonnes of refined copper in 2008, is subject to US bankruptcy court approval.

The deal is expected to be closed by July or August, the statement added.

The 1.7-billion purchase involves a cash payment of 1.1 billion dollars.

The remaining 600 million dollars will be paid in the form of a promissory note, payable over a nine-year span.