Seeing red

25 September 2019 By Clara Ferreira Marques

China’s biggest producer of the metal may have built a nearly 10% stake in $6 bln First Quantum, and is negotiating to invest in its Zambian assets. The low price of copper, and depressed industry valuations, make it a good time to do more. It puts Rio Tinto on the M&A spot.

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Context News

First Quantum said on Sept. 23 that it was in talks with Jiangxi Copper over the sale of a minority interest in its Zambian copper assets.

The company added that it had not engaged in discussions regarding a takeover bid or change of control transaction after the Globe and Mail newspaper, citing unnamed sources, reported on Sept. 20 that Jiangxi Copper was targeting a takeover of First Quantum. Bloomberg reported that First Quantum was attracting takeover interest from global miners, and that it was working with defence advisers.

Jiangxi Copper recently bought a stake of nearly 10% in First Quantum on the secondary market, below the threshold for disclosure for Toronto-listed companies, Reuters reported on Sept. 23, citing an unnamed source from the Chinese company.

First Quantum shares closed down almost 10% on Sept. 23 at C$11.03.

Context News

First Quantum said on Sept. 23 that it was in talks with Jiangxi Copper over the sale of a minority interest in its Zambian copper assets.

First Quantum shares closed down almost 10% on Sept. 23 at C$11.03.

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