Sterlite Industries, a part of the Vedanta Group signed an agreement regarding the acquisition of copper mining company Asarco for $ 2.6 billion. The transaction which according to sources has been funded by intra-group accruals and borrowings is still under US Bankruptcy Court’s approval. This remarkable deal surpassed the deal done by Tata’s early this year to buy Jaguar and Land Rover from Ford for $ 2.3 billion. After the finalization of the deal Sterlite will become third largest copper mining company in the world.

 

Asarco which was formerly known as American Smelting and Refining Company was kept in bid in April month. In the bid process Sterlite emerged as the highest bidder among many suitors. According to the sources Sterlite will acquire the assets and absorb the ‘operating liabilities.’  The legacy liabilities for asbestos and environmental claims are not the part of the agreement, says the source. Lehman Brothers acted as financial adviser and Baker Botts acted as legal adviser to Asarco in this transaction.

 

Anil Agarwal chairman of Sterlite Industries said that he is delighted that agreement has been finalized. For him the acquisition is a milestone and important for Sterlite. He further said that acquisition will create long term value for all stakeholders through leveraging operational potential and project skills. He hoped that the acquisition will diversify the operation in the North American market.