Grupo Mexico Wins Back Copper Mining Unit Asarco

The Associated Press

A Texas judge has issued final approval of Grupo Mexico SAB's plan to regain control of copper miner Asarco LLC, ending a lengthy takeover battle with rival suitor Sterlite Industries.

The Mexico City-based conglomerate said Sunday that U.S. District Court Judge Andrew Hanen in Brownsville, Texas on Friday confirmed Grupo Mexico's plan to pay $2.2 billion to Asarco's creditors. The deal was previously recommended for approval by U.S. Bankruptcy Court Judge Richard Schmidt.

The ruling will return control of Asarco to Americas Mining Corp., a Grupo Mexico subsidiary. The deal is expected to close by mid-December.

Under the plan, Grupo Mexico will give $2.2 billion to Asarco to be distributed to creditors together with an estimated $1.4 billion in cash held by Asarco. Grupo Mexico also will guarantee a one-year note for $280 million payable to Asarco's asbestos creditors, forgive $161 million of Asarco tax obligations to Americas Mining, and release Americas Mining's claim to a $60 million tax refund that will, instead, remain with Asarco.

To finance the deal, a group of financial institutions has promised $1.4 billion in financing to Americas Mining along with Grupo Mexico's $800 million contribution.