Slowdown an opportunity, looking to acquire more: Vedanta chief

Slowdown an opportunity, looking to acquire more: Vedanta chief
PTI
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First Published: Mon, Mar 09 2009. 02 43 PM IST
Updated: Mon, Mar 09 2009. 02 43 PM IST
New Delhi: After clinching Asarco’s buyout deal at $1.7 billion, NRI billionaire Anil Agarwal-led Vedanta Resources is looking at more acquisitions in mining in view of lower valuations of these assets due to slowdown.
“... this is the time (to buy mining firms) because in resource sector it is really difficult to acquire ... in this distress if anything comes of our line then we will look at it and I think things will come ... but at the same time we are very cautious,” Vedanta Resources Chairman Anil Agarwal told PTI in an exclusive interview.
Sterlite Industries, the Indian arm of London-based Vedanta Resources, last week entered into a deal to buyout America’s third largest copper producer Asarco for $1.7 billion. Going-ahead with its buyout plans, Agarwal said if such acquisitions take place it would be mainly in Central and South America, Canada and Australia.
With Asarco in its fold, India’s leading copper producer Sterlite, is slated to be amongst the world’s top three blue metal firms in the world with the combined annual capacity expected to double to 1.2 million tonnes by next year.
“This (Asarco) acquisition is in line with our strategy of leveraging our existing skills to become a diversified global copper producer and creating long-term value for shareholders,” Sterlite Chairman Anil Agarwal had said.
Vedanta Resources has operations primarily in India, Africa and Australia and is undertaking a massive capacity expansion at all its premises aimed at becoming the world’s fifth largest metals and mining firm.
In India, the London Stock Exchange-listed firm operates through its flagship firm Sterlite Industries, which has controlling stake in leading metal and mining firms such as Hindustan Zinc, Balco, Malco, Sesa Goa.
Vedanta Resources has lined up a whopping Rs70,000 crore investment in its aluminium, copper, zinc and iron ore businesses in India by 2011-12. Of the proposed investment, the company has already invested nearly 50%.
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First Published: Mon, Mar 09 2009. 02 43 PM IST