London listed mining group ACG is gearing up for a global deals spree after snapping up a Turkish copper mine for $290m (£223m) today.
Acquisition Company Limited (ACG), a special purpose acquisition vehicle listed on the London Stock Exchange, revealed this morning it had bought Turkey-based Polimetal in the first push of a "global copper consolidation strategy".
Polimetal holds mining rights and operates the Gediktepe mine, an open pit mine located in the Bigadiç district of the Bal?kesir province of Western Turkey.
ACG, led by chief executive Artem Volynets, formerly the boss of Russian energy group EN+ and head of strategy at Russia's largest aluminium producer Rusal, is now plotting a major deals offensive and acquisition strategy across Africa and North and South America.
"This transaction will inaugurate ACG Metals as a premier copper producer on the London Stock Exchange," Volynets said in a statement to the market.
"The Gediktepe mine offers us an ideal foundation for further consolidation of copper assets globally as the metal enjoys a sustained increase in demand."
The deal comes amid a looming wave of consolidation in the mining sector as companies jostle for prized copper assets, a key metal in the production of electric vehicles and renewable energy.
Australian mining group BHP's bid to takeover London-listed rival Anglo American failed earlier this year when it demanded the firm carve off its steelmaking and coal operations from its lucrative copper mines in South America.
Analysts have been pricing in a period of consolidation in mining as more suitors now move into the race for copper.
Nick Davis, senior partner at Memery Crystal, said the failed take-over of Anglo American could open the door to more deals in the sector.
"The global need for copper and other battery metals will continue to be the driving force behind M&A in the sector especially while the copper price continues to be so strong," he added.
By CityAM
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