Mining major Vedanta Resources today said it is now "free" to acquire 74 per cent stake in Black Mountain zinc mines in Africa, which it valued at $332 million.
"Vedanta announces that it has been notified by Anglo American that Exxaro Resources, Anglo American's black economic empowerment partner in Black Mountain Mining in South Africa (Black Mountain), has not exercised its pre-emption right to acquire the 74 per cent stake in Black Mountain," the company said in a statement.
Last month, beating rivals like China Metallurgical and Xstrata, the NRI billionaire Anil Agarwal-led company had said that it has finalised a deal with the London-based Anglo American to acquire the latter's zinc business, spread across Ireland and Africa, at $1.34 billion.
"The acquisition of the 74 per cent stake in Black Mountain and other Anglo American Zinc Assets remains subject to customary regulatory approvals as well as competition clearance in the relevant jurisdictions," the statement added.
Vedanta had said that it would acquire three zinc assets of Anglo American within the next one year. Of the total consideration, $698 million relates to Skorpion mines, $308 million to the Lisheen mines and $332 million to Anglo American's 74 per cent interest in Black Mountain Mining, in which the South Africa-based Exxaro Resources holds a 26 per cent stake. Exxaro had a pre-emptive right to match Vedanta's offer with respect to this asset.
Vedanta will fund the deal entirely through cash. As on March 31, 2010, Vedanta had cash, cash equivalents and liquid assets amounting to $7.2 billion.
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The acquisition of the three assets would enhance the company's annual zinc and lead capacity by 37 per cent to 1.4 million tonnes, representing 11 per cent of the global zinc market, Vedanta had said earlier.
At present, Vedanta has an annual zinc output of 1.06 million tonnes.