Grupo Mexico completes Asarco merger

After extending the deadline for its offer, Grupo Mexico completed its tender for the outstanding shares of New York, N.Y.-based Asarco (AR-N).

The Mexican conglomerate captured 32.6 million shares of Asarco, representing 81.5% of the company, enough to entitle Grupo Mexico to gain control of Asarco without a vote from Asarco shareholders.

Grupo Mexico emerged the victor in a month-long bidding war for Asarco against rival Phelps Dodge (PD-N) by offering shareholders US$29.75 per share in cash. The transaction thwarted Phelps Dodge’s plan to complete a 3-way merger along with Cyprus Amax Minerals.

Grupo Mexico expected to have completed the Asarco merger by Nov. 17.

With the addition of Asarco’s operations in Arizona, its copper production could double from the current 1 billion lbs. Grupo Mexico also operates numerous silver and zinc mines across Mexico, and the country’s largest rail system.

The conglomerate also gains a 54% stake in Southern Peru Copper (PCU-N) and a 19% stake in Coeur d’Alene Mines (CDE-N).