MOSCOW, June 29 (RIA Novosti) - Russian metals giant Norilsk Nickel said Friday that shareholders accounting for 90% of Canadian gold and nickel producer LionOre's stock had accepted its acquisition offer, now extended until July 10.
Norilsk Nickel said that shareholders owning a total of 201.09 million common shares in LionOre had agreed to the Russian company's bid to acquire all of LionOre's stock by the original offer deadline of June 28, for $6.45 billion.
"Since all the conditions of the offer have now been met, Norilsk Nickel, through a wholly-owned subsidiary, has accepted all LionOre shares that were included in the offer," Norilsk Nickel said in a press release.
Norilsk Nickel's general director, Denis Morozov, said the acquisition will be the largest foreign takeover by a Russian company, and will further diversify the company's international presence.
In early May Norilsk Nickel announced its intention to buy LionOre shares at 21.5 Canadian dollars per share (US$20.4), higher than the 18.5 Canadian dollars (US$ 17.5) offered by a bidder from Switzerland, Xstrata Plc.
Later on, the Swiss mining group increased its offer to 25 Canadian dollars (US$23.7), but was outbid by Norilsk Nickel, which offered 27.5 Canadian dollars (US$26) until June 28.
LionOre terminated its support for Xstrata's offer in favor of the raised Norilsk Nickel offer, pledging to pay 305 million Canadian dollars (US$289 mln) to Xstrata as termination compensation.
LionOre is an international nickel concentrate producer with operations in Western Australia, South Africa and Botswana and a gold mine in Western Australia.
Norilsk Nickel is the largest mining and metals company in Russia, the world's largest producer of nickel and palladium, and one of the world's largest producers of platinum and copper.
