 TORONTO (miningweekly.com) – Vale, the world's second-biggest mining company, will offer to buy Brazilian copper producer Paranapanema for 2,01-billion reais (about $1,14-billion), the company announced on Thursday.
The offer, of 6,30 reais a common share, will be subject to at least 50% plus one share of Paranapanema being tendered into the offer.
The price represents a premium of about 22,3% to the last 90 days volume-weighted average closing price of Paranapanema, Vale said in a statement.
"If the offer is successful, Vale intends to conduct studies that could result in corporate and/ or asset reorganisation," the firm said.
Paranapanema is Brazil's biggest producer of refined copper. It owns a copper smelter and refinery and three plants that produce copper products. It also owns 99,09% of CibrafÈrtil, which operates a phosphate fertiliser plant.
Vale is the biggest iron-ore producer in the world, but has been taking steps to diversify its commodity spread. The firm bought Canadian nickel miner Inco in 2007, and has announced a series of fertiliser production acquisitions this year.
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