Vedanta buys Anglo zinc biz for $1.34 b

“Vedanta Resources & Anglo American have signed a definitive share purchase agreement under which Vedanta, through one of its controlled group companies (Hindustan Zinc), will acquire Anglo American Zinc for a total consideration of US$1.34 billion,” it said in a statement. The buyout will be funded entirely through cash. As on March 31, 2010, Vedanta had cash, cash equivalents and liquid assets of US$7.2 billion. The deal will be completed in next 12 months, making it the world’s zinc and lead producer, the company said.
The acquisition will increase the company’s annual zinc and lead capacity by 37 per cent to 1.4 million tonne, representing 11 per cent of the global zinc market.