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ABN AMRO advises Sterlite Inds on the largest India-US M&A

This article was posted on Jun 4, 2008 and is filed under Press Releases

ABN AMRO acted as sole financial advisor to Sterlite Industries (a Vedanta Resources plc company) for the proposed acquisition of ASARCO LLC. The acquisition includes substantially all of the operating assets of ASARCO, a Tucson, Arizona based copper mining, smelting and refining company. The US$2.6 billion deal is the largest copper resource M&A deal by an Asian company (based on online database Mergermarket). It is also the largest India outbound M&A deal this year to date and the largest ever purchase of a US asset by an Indian company.

Manoj Agarwal, ABN AMRO’s Head of Global Corporate Finance for India said: “This proposed landmark transaction by the Vedanta reinforces the global ambition levels of leading Indian corporates. The proposed deal further underscores our leadership position in Indian cross border M&A deals”.

Commenting on the deal, Madan Menon, MD and Head of Global Banking & Markets for ABN AMRO in India said: “The proposed acquisition by Sterlite is a significant and timely step in their international growth plans and we are delighted to be Sterlite’s sole advisor. Our enlarged global network within ABN AMRO and RBS has helped us offer our client seamless execution across India, UK and the US”.

Kevin Lee, Co-Head of Energy and Resources, Asia at ABN AMRO noted, “Sterlite’s proposed acquisition is a brilliant strategic move and well-timed as world class resources have become scarce”.

The transaction provides Sterlite, a subsidiary of Vedanta, a London based FTSE 100 metal and mining group with a world class operation producing high quality copper resources. Sterlite is well positioned to benefit from rising copper demand and strong copper prices with the additional operations located in a geopolitically stable market. Vedanta also brings its operational skills and strong balance sheet to further develop and optimize ASARCO’s mines and plants.

ASARCO is currently the third largest copper producer in the US with annual production of 235,000 tonnes of refined copper and estimated reserves of 5 million tonnes.

Sterlite is the announced planned sponsor of the reorganization of ASARCO. The agreement, filed with the US Bankruptcy Court for the Southern District of Texas, is expected to be sanctioned in June and is subject to formal approval by ASARCO’s creditors and claimants.

Last year, ABN AMRO was joint financial advisor to Tata Steel for its US$13bn acquisition of Corus, India’s largest outbound M&A deal to date, and was also the financial advisor to Suzlon Energy on its bid to acquire REpower Systems.

Sourced From: Adfactors Public Relations Pvt Ltd

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