Polish copper giant KGHM set to take over Canadian producer

The announcement about the go-ahead was made by both companies on Monday evening. Under the offer made to shareholders on 6 December 2011, KGHM is paying 15 Canadian dollars per share of Quadra FNX, a press release from KGHM states.

Almost 80 percent of Quadra’s shareholders voted in favour of the take-over, surpassing the two-thirds majority required for the deal to be rubberstamped.

The take-over deal, valued at some 2.87 billion Canadian dollars (2.17 billion euro), is set to be finalised in the coming weeks pending a Supreme Court decision in the Canadian province of British Columbia as well as the country’s Ministry of Industry.

“This transaction has strategic importance for KGHM, one which ensures future profits, builds shareholder value and ensures us a competitive position on the world’s market,” Herbert Wirth, President of KGHM stated in a press release, adding that “it also strengthens the position of the Polish economy as a strategic producer of raw materials and rare-earth metals.”

The acquisition will see KGHM increase its production in 2012 by around 25 percent, or 100 thousand tonnes of mined copper, with that figure expected to rise to some 50 percent in the future.

Total mineral resources will increase to over 8.2 million tonnes of copper, making KGHM the fourth-largest copper producer globally, with the deal adding Quadra’s Sierra Gorda project in Chile, along with other assets in Canada, Chile and the United States to the company’s portfolio. (jb)