MY THORTS20 May 2021 19:43
Alcan (38.1bn)Rio Tinto Canada Holding (RTCH), an indirect, wholly owned subsidiary of UK-based Rio Tinto, acquired Alcan in November 2007. The largest metals and mining deal in history was closed under the mandatory acquisition provisions of the Canada Business Corporations Act (CBCA).RTCH now holds 100% of Alcan’s outstanding shares. Rio Tinto was involved in a bidding battle for the Canadian aluminium company, which hindered its capabilities to make subsequent deals. High raw material costs and competition from China also fall behind Rio’s expectations.Acquirer – CVRD; Target Company – Inco ($13.30bn)In October 2006, Companhia Vale do Rio Doce (CVRD) spent $13.3bn for the acquisition of majority stake in nickel production firm Inco. It corresponded to 75.66% of its outstanding shares on a fully diluted basis.CVRD was renamed Vale in December. As a result of acquisition of Inco, Vale is currently the world’s largest producer of nickel.CaterpillarAcquirer – Caterpillar; Target Company – Bucyrus International ($8.80bn)Machinery and engines manufacturer Caterpillar acquired Bucyrus International, a designer and manufacturer of mining equipment, in July 2011 for approximately $8.80bn. Both companies involved in the transaction are based in the US.Caterpillar entered an agreement to acquire Bucyrus in November 2010. In May 2011, it issued $4.5bn worth of bonds to aid its acquisition. The company also used cash from its balance sheet and debt to fund the deal. The acquisition allowed Caterpillar to extend its surface and underground mining products and solutions to the mining industry.Acquirer – Alpha Natural Resources; Target Company – Massey Energy ($8.50bn)Alpha Natural Resources, a US-based producer of metallurgical coal, acquired a 100% interest in coal exploration company Massey Energy Company (now Alpha Appalachia Holdings), for $8.50bn in June 2011.Covid-19 chartTHEMATIC REPORTSAre you worried about the pace of innovation in your industry?GlobalData's TMT Themes 2021 Report tells you everything you need to know about disruptive tech themes and which companies are best placed to help you digitally transform your business.Find out moreUnder the agreement, Massey shareholders were allotted 1.025 shares of common stock of Alpha and $10 in cash for each share of Massey common stock. Massey stockholders owned 46%, and Alpha stockholders owned 54% of Alpha Appalachia after the deal. The contract proved to be a disaster, resulting in Alpha filing for bankruptcy in August 2015, due to consequent losses and debt burden of acquisition.Barrick GoldAcquirer – Barrick Gold; Target Company – Equinox Minerals ($7.65bn)Barrick Gold, a leading mineral exploration company through its wholly owned subsidiary Barrick Canada, completed the acquisition of Equinox Minerals in July 20
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