MUMBAI/TEXAS (Commodity Online): Finally, Indian copper major Sterlite Industries Ltd’s  bid to buy bankrupt US copper miner Asarco LLC has almost come to an end with a Texas district court ruling in favour of Mexican mining giant Grupo Mexico SA de CV.

 over its Indian rival Sterlite Industries Ltd (Sterlite), a unit of London-based Vedanta Resources Plc.

The judge affirmed the August ruling of bankruptcy court and ordered Grupo Mexico to make a comprehensive proposal to Asarco’s workers union to pave the way to exit bankruptcy.

“This case is now in its fifth year of bankruptcy proceedings. While the path has not necessarily been as expedient or as unerring as some would have preferred, it has led all concerned to a point where the end, barring appeals, is now in sight,” the judge said.

Tucson, Arizona-based Asarco is the third-largest copper producer in the US, operating three copper mines and a smelter and owns 5 million tonnes of copper resources. The company was acquired by GMexico in 1999 for $2.2 billion. Crippled by its huge debt burden and hefty environmental liabilities and asbestos-related claims, Asarco was filed for bankruptcy protection in 2005. Subsequently, GMexico lost control of the miner, which employs around 2,500 people.

Earlier in August, US bankruptcy judge Richard Schmidt recommended the district court to approve GMexico’s $2.48 billion offer. Conversely, Asarco’s union and the court-appointed management favoured India’s Sterlite bid of $2.57 billion.

Through the court ruling, Americas Mining Corporation (AMC), a sub-holding company of GMexico will regain control of Asarco.

Under the terms, Grupo Mexico will provide $2.2 billion to Asarco to repay its debts and guarantee a one-year note for $280 million to Asarco's asbestos creditors. It will also forgive payment obligations to Americas Mining Corporation amounting to $221 million.

Grupo Mexico has tied up $1.4 billion in loans from financial institutions to fund the deal, in addition to its own resources.