Bloomberg
Mirabela Takeover Seen With Minmetals Chasing Nickel: Real M&A
Edited by : AL CIRCLE
2 min read
Minmetals Resources Ltd. (1208), backed by China’s biggest metals trader, is transforming companies from Mirabela Nickel Ltd. (MBN) to Alumina Ltd. into takeover targets as it eyes $7 billion of nickel, bauxite and alumina deals.
Minmetals, which agreed a month ago to buy copper producer Anvil Mining Ltd. (AVM) after losing a bidding contest for Equinox Minerals Ltd., is planning more takeovers, its chief financial officer said Oct. 28. The Hong Kong-listed mining company is turning to dealmaking with its own stock selling for less relative to earnings than any raw-material producer in the world, according to data compiled by Bloomberg.
Mirabela, which controls the Santa Rita nickel mine in Brazil, and Alumina, which is an owner of the world’s biggest producer of the raw material, may attract interest from Minmetals, Perpetual Ltd. said. With the company’s earnings set to peak this year and the Anvil deal facing increased scrutiny from the Democratic Republic of Congo, Minmetals needs acquisitions to extend the life of its mines and boost valuations, according to Credit Suisse Group AG.
“Consummating a few of these would go a long way to closing that valuation gap,” John Stephenson, who helps manage $2.7 billion at First Asset Investment Management Inc., said in a telephone interview from Istanbul. “Minmetals’ mines have relatively short mine lives. They definitely would be an acquirer and it would certainly help.”
David Lamont, the chief financial officer for Minmetals, declined to comment on speculation. An official for Mirabela and an external spokesman for Alumina also declined to comment.
Minmetals, which agreed a month ago to buy copper producer Anvil Mining Ltd. (AVM) after losing a bidding contest for Equinox Minerals Ltd., is planning more takeovers, its chief financial officer said Oct. 28. The Hong Kong-listed mining company is turning to dealmaking with its own stock selling for less relative to earnings than any raw-material producer in the world, according to data compiled by Bloomberg.
Mirabela, which controls the Santa Rita nickel mine in Brazil, and Alumina, which is an owner of the world’s biggest producer of the raw material, may attract interest from Minmetals, Perpetual Ltd. said. With the company’s earnings set to peak this year and the Anvil deal facing increased scrutiny from the Democratic Republic of Congo, Minmetals needs acquisitions to extend the life of its mines and boost valuations, according to Credit Suisse Group AG.
“Consummating a few of these would go a long way to closing that valuation gap,” John Stephenson, who helps manage $2.7 billion at First Asset Investment Management Inc., said in a telephone interview from Istanbul. “Minmetals’ mines have relatively short mine lives. They definitely would be an acquirer and it would certainly help.”
David Lamont, the chief financial officer for Minmetals, declined to comment on speculation. An official for Mirabela and an external spokesman for Alumina also declined to comment.
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