Minmetals Resources says it intends to make an all-cash offer to acquire Equinox Minerals Ltd. for $6.3 billion Canadian (US$6.5 billion). The deal marks the company's first investment in the African copper belt and the Middle East.
The Hong Kong unit of China's largest metals traders is offering $7 Canadian per share, which represents a 23 percent increase over the closing price of Equinox shares on TSX Friday.
Minmetals Chief Executive Andrew Michelmore said in a statement Sunday the bid is a "superior alternative" to the proposed acquisition by Equinox, which is based in Australia, of Canada's Lundin Mining Corp. Equinox has projects in Zambia and Saudi Arabia.
Equinox has said it planned a $4.8 billion Canadian (US$4.9 billion), hostile bid for Lundin.