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China Minmetals to acquire OZ Minerals

Published: 16 Feb 2009 18:33:00 PST

Feb. 16, 2009 (China Knowledge) - China Minmetals Corp, the largest iron and steel trader in China, reached an agreement with OZ Minerals Ltd, Australia's third largest diversified mining company, to acquire the latter company, sources reported.

According to the agreement, China Minmetals will spend A$2.6 billion (US$1.7 billion) in cash for the acquisition in a bid to ensure its copper and zinc supply.

OZ Minerals made an official announcement stating the offering price of 82.5 Australian cents per share, representing a premium of 50% over the last traded price.

Andrew Michelmor, CEO of OZ Minerals, noted that the company recognized the deal as the best financial channel to repay loans and look after the shareholders’ interests.

Last week, Aluminum Corp of China (Chinalco) decided to inject US$19.5 billion into Australia-based Rio Tinto Ltd to buy the latter's assets.

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