A day after Sterlite announced that it is acquiring Asarco, Grupo Mexico has said that it will do absolutely everything in its power to block the sale of its bankrupt subsidiary, which could also be a legal tangle.
Grupo Mexico said that it was denied key information that would have allowed it to properly value Asarco.
Sterlite officials, while expressing optimism over their stand however said that every party had a right to appeal. A Sterlite spokesperson said that "We need to get only one clearance, that of US Bankruptcy Court in Texas."
Sterlite said that "Asarco is a strategic fit with Sterlite's existing copper business."
Earlier, Sterlite said that it had agreed to buy the entire operating assets of Asarco for USD 2.60 billion in an all cash deal, also making it the largest deal by an Indian company in 2008. The deal catapults Sterlite into the world's 3rd largest copper producer from the present 5th with estimated reserves of 12 to 13 million tonnes. Besides, it also gives the metal major a global footprint and a key foothold in North America.