Anglo-Swiss mining company Xstrata PLC on Monday said it offered $4 billion for LionOre Mining International Ltd., a Canadian nickel and gold miner, which accepted the offer.
Xstrata last year won a bidding war for Canadian nickel miner Falconbridge Ltd. with an $18.8 billion offer that gave Xstrata entrance to the North American market.
The company's cash bid for LionOre amounts to 18.50 Canadian dollars per share, or a total price of C$4.6 billion -- a 6 percent premium over LionOre's closing stock price Friday on the Toronto Stock Exchange. That total price equates to nearly $4 million (U.S.).
Merger and acquisition activity among global metals companies has heated over the past year and has been a significant driver of share prices in the sector. In the U.S., New Orleans-based Freeport McMoran Copper & Gold Inc. recently closed its $25.9 billion takeover of Phoenix-based rival Phelps Dodge Corp.
On the New York Stock Exchange, shares metals miners were mixed on Monday. Freeport shares rose $1.91 to $64.25 in afternoon trading. Shares of Australian miner BHP Billiton Ltd. added 98 cents, or 2.1 percent, to $48.23. Canadian gold miner Barrick Gold Corp. saw its shares dip 4 cents to $29.03.
AP
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Xstrata Offers $4 Billion for Canada's LionOre Mining International, Which Accepts Proposal
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