Minmetals Resources Ltd, a unit of state owned China Minmetals Group, agreed to buy Democratic Republic of Congo copper producer Anvil Mining Ltd for HKD 10 billion (USD 1.3 billion) to help source supply for China, the biggest consumer.

Minmetals will pay CAD 8 (USD 7.6) a share for each of Anvil’s. The offer is a 39% premium to Anvil’s closing Canadian share price. The board of Anvil, listed in both Sydney and Toronto, has recommended the offer.

Adding Anvil will boost Minmetals’ copper output by about 60%and its copper reserves by 75% to about 1.7 million tonnes, Minmetals said in a presentation that Anvil may produce 60,000 tonnes of copper cathode annually from next year.

Minmetals is advised by BNP Paribas SA and Anvil is advised by BMO Capital Markets. Minmetals will use a loan from Album Enterprises, a unit of its largest shareholder, to fund the deal, it said.

(Sourced from Bloomberg)