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Last Updated: Tuesday, 24 October 2006, 15:52 GMT 16:52 UK
Brazilian miner buys Canada rival
CVRD mine
CVRD becomes the world's second largest mining company
Brazilian firm CVRD has become the world's second-biggest mining company, after securing its C$19bn ($17bn; 9bn) takeover of Canadian nickel miner Inco.

CVRD has bought 76% of Inco shares for C$15bn, and says it intends to buy the remainder for the same price - C$86 per share - by 3 November.

The Brazilian firm, already the world's largest iron ore miner, will now be the largest nickel producer as well.

It is the second-largest miner overall, behind Anglo-Australian BHP Billiton.

Canadian assurances

CVRD says it plans to dissolve Inco's board and delist the company's shares on both the Toronto and New York stock exchanges.

But to ensure approval for the takeover by Canadian authorities, CVRD has agreed to base its nickel business in Toronto, with the unit having a Canadian chief operating officer and senior Canadian management.

CVRD has also pledged not to lay off any Canadian workers for three years, and increase investments at Inco's Canadian operations.

With metal prices hitting record highs this year due to strong global demand led by China, it is not the first takeover in the Canadian metals sector in 2006.

Back in August, Anglo-Swiss firm Xstrata took control of fellow Canadian nickel miner Falconbridge.


SEE ALSO
Brazilian Indians leave iron mine
20 Oct 06 |  Americas
Xstrata wins Falconbridge battle
15 Aug 06 |  Business
Inco targeted by $17bn buyout bid
11 Aug 06 |  Business

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