Tuesday, May 13, 2008

More mining company mergers expected

A report ("The Year of the Hunted and the Hunters: Global transactions in mining and metals") released today by Ernst & Young says that 40% of the world's largest mining companies expect to be able to meet their growth targets only by acquisitions in the next two years. They expect to see three $50 billion+ deals by year end, concluding that the credit crunch is not much of an impact in the mining sector.

Meanwhile, Reuters reports rumors that BHP Billiton was planning to offer 3.8 of its shares for every Rio Tinto share in a takeover bid. BHP and Rio Tinto are joint owners of the huge Resolution Copper mine being developed near Superior, Arizona.

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