Sterlite Again Trying To Purchase Operating Assets of ASARCO LLC

Asarco is a 110 year old company and is currently the third largest copper producer in the United States of America. In the month of October 2006 the metal giant of America terminated agreement with Sterlite (USA), Inc., for the sale of its operating assets. But as of now a new agreement has again been signed for purchase consideration with a cash payment of US$ 1.1 billion on closing along with more offerings subject to the approval of the U.S. Bankruptcy Court for the Southern District of Texas, Corpus Christi Division. It's previous name was American Smelting and Refining Company. In the year 2008 approximately 237,000 tonnes of refined copper was sold by Asarco. Asarco's mines currently have estimated reserves of 5 million tonnes of contained copper. For the year ended 31 December 2008, Asarco had total revenues of nearly US$1.9 billion and profit before tax of US$ 393 million. At the time of Sterlite Asarco bid cancellation Joseph F. Lapinsky, President and Chief Executive Officer of ASARCO said

“We are taking this action in light of Sterlite’s disclosure to us last week that it ‘cannot and will not’ close the sale unless ASARCO agrees to a price reduction”.

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