Vedanta group firm Sterlite is understood to be negotiating half the price of $2.6 billion it had previously offered for acquiring the world's leading copper producer, Asarco.
Billionaire Anil Agarwal-led Sterlite Industries had last year offered $2.6 billion for the ailing US-based copper producer, but following devaluation of mining assets amid the global downturn, it lowered the bid to $2.1 billion.
Now that copper prices have fallen steeply and valuations of mining assets have dipped further, Vedanta is believed to be pushing for a 50 per cent lower price for Asarco, sources close to the development said.
"We are re-negotiating. I hope it finishes soon," Vedanta Resources Group Chairman Anil Agarwal told PTI, without divulging any financial details for acquiring the company.
"Copper prices have fallen by almost one-third from $8,000 a tonne to $3,500 a tonne and are expected to fall further...New prices (for Asarco) should reflect current market conditions," Agarwal said.
Last year in May, Sterlite Industries, the Indian arm of London-listed mining major Vedanta Resources Plc, had inked a definitive agreement to buyout Asarco. Sterlite was to fund the acquisition through a combination of debt and existing cash reserves.