Tuesday, May 31, 2011

Barrick (ABX) Gets Zambian Approval for Copper Mine

Barrick Gold Corp. (NYSE:ABX) was given the go ahead by the Zambian Competition Commission to acquire takeover of Equinox Minerals Ltd. (EQN), which includes the Lumwana copper mine.

The giant gold miner, which is seeking to diversify its assets, will acquire the company for $7.5 billion.

According to the Zambian Competition Commission, "The Board granted final conditional authorization on the premise that the acquisition did not raise any competition concerns because Barrick Gold Corp. had no known presence in Zambia and, therefore, unlikely to lead to a situation that could substantially lessen competition in the mining sector.”

Conditions attached to the approval of the deal include honoring existing contracts with local suppliers and smelters, along with having Zambia Consolidated Copper Mines Investment Holdings retain a 2.2 percent stake in Equinox.

Barrick Gold closed Friday at $47.39, jumping $0.22, or 0.47 percent.

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