$26 Billion Deal to Create Largest Copper Firm November 21, 2006
Posted by Tim Raines in: wholesale, business, finance, mining , trackbackFreeport-McMoRan Copper & Gold announced it will pay $126.46 per share in cash and stock to purchase Phelps Dodge, creating the world’s largest publicly-traded copper company.
From Reuters:
“This kind of big merger could raise the company’s ability to take advantage in price negotiations, therefore this should be positive for copper prices,” said Naohiro Niimura, director at Barclays Capital Japan.
“In the current bearish trend, the market is not too sensitive about buying copper actively, but in the medium- and long-term it should be positive.”
Phelps Dodge has mines in North America, South America and Africa, while Freeport-McMoRan operates the Grasberg mine in Indonesia, said in terms of reserves to be the world’s largest copper and gold mine.
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