http://works.bepress.com/cgi/viewco....amp;context=carlos_patron
Reproduced with permission from Law Business Research Ltd. This article was first published in The Mergers & Acquisitions Review, 3rd Edition (published in September 2009 – editor Simon Robinson).
Also noteworthy is the continuing presence of Chinese investors, seeking to secure supply of strategic mineral commodities by acquiring Peruvian mining corporations. Two of the largest transactions, in terms of value, announced during 2008 and the first half of 2009 include the aforementioned acquisition of Northern Peru Copper by China Minmetals and Jiangxi Copper ($446 million) and the execution of an agreement between Cardero Resource Corp and Nanjinzhao Group Co for the acquisition of Cardero Hierro del Peru (originally announced at $200 million). While Peru is still clearly a ‘capital importing’ country, M&A activity in Peru is not all one-way traffic. In several important sectors of the economy, consolidation through the acquisition of small and mid-sized targets by Peruvian buyers has continued to be a strong trend. Likewise, larger Peruvian groups have begun to look abroad for investment opportunities, albeit accumulated stock of direct foreign investment abroad is still modest ($1.476 billion, according to the 2008 estimate). For example, in September 2008, Minsur SA, a privately owned mining conglomerate held by the Peruvian Brescia Group, acquired the Paranapanema Group’s Taboca tin division in Brazil for approximately $472 million. In addition, in November 2008, Soldexa, a Peruvian company specialising in technology for welding and cutting material also held by the Brescia Group, acquired Soldaduras Westarco and Soldaduras Megriwelck in Colombia for a total value of $97 million. |