Vedanta Resources will become the world's biggest zinc producer after a $1.3bn deal to buy assets from Anglo American.
Online PR News – 13-May-2010 – – Vedanta Resources will become the world's biggest zinc producer after a $1.3bn deal to buy assets from Anglo American.
Anglo is selling mines in Namibia, South Africa and the Lisheen project in Ireland, and adding these to Vedanta's existing resources will give the latter 11% of the global zinc market. Vedanta is funding the cash deal from its own resources - at the end of March it had $7.2bn in cash and liquid investments. Anil Agarwal, Vedanta's chairman, said:
These high quality assets complement Vedanta's existing portfolio, creating the largest zinc and lead producer in the world.
As for Anglo, the disposal is part of its strategy to focus on its core businesses. In the market Vedanta has climbed 255p to £25.71 while Anglo is up 222.5p to £27.24.