Vale Offers $1.1 Billion For Brazilian Copper Producer As It Seeks To Expand (VALE)
Brazilian miner Vale (NYSE: VALE) has offered to pay $1.14 billion to acquire Brazilian copper producer Paranapanema SA as the mining major seeks to strengthen its position in the copper market according to Bloomberg.
Vale offered a price of 6.30 reals per share for Paranapanema, which represents a 8.6% premium to yesterdays closing price. Vale wants to become one of the world's largest copper producers, rivaling miners such as Xstrata Plc and Anglo American (NASDAQ: AAUK). Vale announced earlier in July that it plans to invest $400 million in a Zambian mine along with African Rainbow Minerals Ltd. to further develop its copper production.
If Vale were successful in its acquisition of Paranapanema, it would add an additional 220,000 tons of copper to the 300,00 tons it already produces each year.
Shares of Vale are trading extremely strong this afternoon, up 45 cents to $28.01.
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