The Mexican government has sold the Canaea copper mine to a private Mexican/Belgium mining group for $475 million, eliminating Teck’s (TSE) chance to win a piece of the open pit operation. Teck, as part of a consortium of international investors called Cuprifera Cananea, offered $468 million for the mine. Teck’s offer, which failed to comply with certain financing terms, was rejected last month.
Mexico has been trying to sell the bankrupt, state-run operation for over two years, but the conditions set by the mine’s 2,800-member union have deterred many potential investors. Three previous bids, including Teck’s, have fallen through because of financing problems.
The accepted agreement includes a clause that allows the union up to a 5% stake in the purchasing company. The offer also includes an agreement to provide about $300 million in additional investments.
Shares of Larrea Grupo Industrial Minera Mexico, the Mexican buyers’ parent company, soared by more than 7% on the Mexican stock exchange the day the sale was announced.
Be the first to comment on "Teck loses chance to buy Mexican mine"