MMG Gets Shareholder Approval for $5.85 Billion Las Bambas Buy

Reuters reported that China’s MMG Ltd. (HKG:1208) has secured unaniumous approval from its shareholders for the purchase of the Las Bambas Project in Peru from Glencore Plc (LSE:GLEN). A consortium led by MMG will purchase the copper project from Glencore for $5.85 billion.

As quoted in the publication:

The sale to a consortium led by MMG is expected to be completed by September pending final consents, boosting MMG’s growth prospects and putting Glencore in a strong position to return capital to its shareholders. Las Bambas, which is due to begin producing in 2015, is expected to produce 300,000 tonnes of copper a year over 20 years. Output is expected to be higher in the early years at more than 500,000 tonnes by 2016.

In a note in June, Barclays analyst Ephrem Ravi said:

We estimate Las Bambas would not only place MMG among the top 10 global copper producers (number one in Asia), it could also increase its net income multi-fold.

Click here to read the full Reuters article.