Fill out this form to email this article to a friend
Brazilian mining firm buys rival
CVRD's acquisition creates the world's second-largest mining company.
By ASSOCIATED PRESS
Published October 25, 2006
Brazil's CVRD on Tuesday completed its $17-billion takeover of Canadian nickel miner Inco Ltd., acquiring control of the company in a move cheered by investors amid strong demand for its products. The deal transforms the Brazilian company into the world's second-largest mining company, after the Anglo-Australian BHP Billiton Ltd. Before the acquisition, CVRD was the fourth-largest mining company in the world and the largest iron ore miner. CVRD extended its cash offer of 86 Canadian dollars ($76.90) a share until Nov. 3 to get more time to acquire the remaining Inco shares. Companhia Vale do Rio Doce SA will also dissolve Inco's board and delist the company's shares from the New York and Toronto stock exchanges. The outlook for nickel, used to make everything from stainless steel to batteries, is bullish, with low inventory levels amid strong demand from China and India. Also, nickel production is concentrated in only a handful of producers. There are few large-scale projects under development, and CVRD controls four of the five new nickel deposits to be developed over the next five years.
[Last modified October 25, 2006, 00:23:00]
Share your thoughts on this story
|
News
Fifty years ago, they were screwed-up kids sent to the Florida School for Boys to be straightened out. But now they are screwed-up men, scarred by the whippings they endured. Read the story and see a video and portrait gallery.
Print
Email story
Comment
Email editor
