Inco to buy Falconbridge for $11 billion

Manufacturing News, Source : TheManufacturer.com
Published : 11 Oct 2005 18:04

Canadian metals and mining company Inco Ltd. and rival Falconbridge Ltd. announced today that their respective Boards of Directors have approved a friendly takeover of Falconbridge by Inco for nearly $11 billion in cash and stock.

The combined organization, which will be known as Inco Ltd., will be one of the world’s premier mining and metals companies in both nickel and copper. It will be the world’s largest nickel producer, with combined estimated 2005 nickel output of 735 million pounds, forecast to climb to some one billion pounds in 2009. It will also be a significant global copper producer, with combined forecast 2005 production of 1.33 billion pounds, expected to increase to approximately 2.4 billion pounds in 2009.

The combined company will have estimated combined revenues of $6.4 billion for the six months ended June 30, 2005 and combined cash flow from operations of $1.25 billion.

“We’re bringing together two great companies, with excellent assets, to create a great Canadian player in the global markets,” said Scott M. Hand, chairman and CEO of Inco Ltd., who will continue to serve in that role following the acquisition. “This combination will create a mining and metals powerhouse, with outstanding growth prospects and a truly unique opportunity to create significant value for shareholders going forward.”

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