HONG KONG: China's Minmetals Resources on Monday said it will offer Can$6.3 billion ($6.5 billion) to buy copper-miner Equinox Minerals, in what would be the biggest Chinese takeover of an Australian resources firm.
The offer by the Hong Kong unit of China's biggest metals trader will see Minmetals pay Can$7 a share for Equinox, which the Chinese firm said was 23 percent more than its closing price in Toronto Friday.
The deal, which Minmetals expects to be completed by mid-2011, will give it access to Equinox's operations in Zambia and Saudi Arabia.
"Our offer for Equinox aligns with MMR's strategy for growth, enhancing our global production portfolio," Minmetals chief executive Andrew Michelmore said.
Equinox said in a short statement that its board would meet to discuss the proposal and comment after careful consideration.
If the bid is successful it would be double the $3.2 billion China's Yanzhou Coal paid for Australian miner Felix Resources in December 2009.
It is also the latest move by Chinese state-owned firm to get a foothold in Australia's mining sector as it looks to tap the continent's huge natural deposits to feed its ever-growing economy.
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