Commodity Online
MUMBAI: Sterlite Industries of the Vedanta Group will acquire Tuscan based Asarco, a bankrupt copper miner for $2.6 bn.

Tuscon-based Asarco, the third largest copper maker in US had total revenue of $1.9 billion in 2007, according to the Vedanta Group.

Acquisition of Asarco which is subject to approval of a US bankdruptcy court fits strategically with Sterlite’s existing copper business, a company spokesman said.

Asarco, formerly known as American Smelting and Refining Co, produced 235,000 tonnes of refined copper in 2007 and its mines have an estimated reserve of 5 million tonnes of contained copper. It filed for bankruptcy protection in 2005 after it was sued for $1 billion over environmental and asbestos claim.

Sterlite, is India's top non-ferrous metals and mining firm with interests in aluminium, copper, zinc and lead. The deal will be financed through a mix of company’s own reserves and debt..

Last June, it had raised $1.75 billion in American depositary shares to pay for possible acquisitions and cut debt. Indian firms coming of years of strong profitable growth and clean balance sheets that aid easy access to capital have been snapping up overseas firms to expand their presence globally.

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