Anil Agarwal-led Sterlite Industries inked an agreement with US-based copper producer Asarco to purchase all the assets of the company.  According to a statement of Sterlite Industries, the company will acquire Asarco by paying an amount of $1.1 billion in cash and promissory note worth $600 million over a period of nine years. The buyout agreement between Sterlite and Asarco is subject to the approval of the U.S. Bankruptcy Court for the Southern District of Texas, Corpus Christi Division.

 

While interacting with the media, Vedanta Resources Group Chairman Anil Agarwal said that the acquisition of Asarco will enable Sterlite to become a diversified global copper producer in the world. Under the buyout deal, Sterlite will acquire three open-pit copper mines and associated mills and SX-EW in Arizona, a copper smelter in Arizona, and a copper refinery, rod and cake plants and a precious metals plant in Texas. The asset acquisition is on a cash free and debt free basis.

 

Asarco, formerly known as American Smelting and Refining Company, is the third largest copper producer in the U.S. The 110-year-old company has attained stupendous growth rate over the years. In 2008, the company sold approximately 2,37,000 tonnes of refined copper. Asarco's mines currently have estimated reserves of 5 million tonnes of contained copper. Sterlite Industries is an Indian arm of London-listed mining major Vedanta Resources Plc.