Sterlite Industries (India) Ltd is close to deal to buy Grupo Mexico's troubled US copper mining subsidiary, Asarco. The companies have reportedly agreed on a dollar value for the sale of Asarco’s assets and other major points of a proposed contract which may be signed within two weeks.
It is understood that Sterlite would pay less than the $2.6 billion it offered for Asarco last year before copper prices fell. The original sale was part of a plan to reorganize the company, pay off its debts and allow the miner to leave court supervision intact after four years in bankruptcy. However, Sterlite pulled out that sale in October saying that a drop in the copper market no longer justified the price.
Any sale may also end Grupo Mexico’s exposure to any asbestos lawsuits against Asarco.
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