CNMMG’s Noranda takeover hits set back
The world's third largest zinc and ninth largest copper producer, Toronto-based Noranda Inc., confirmed that it had informed common shareholders of Falconbridge Limited that Noranda wanted to take over the Canadian base-metal company.
Noranda, which is already a major Falconbridge shareholder, gave a May 5, 2005, deadline for its takeover bid.
The proposed merger is of great concern to
China National Metals and Minerals Group (CNMMG), which had previously announced an interest in Noranda. A merger of Noranda and Falconbridge would create the world's largest base metals miner, thus likely thwarting any takeover plans CNMMG might have had.
On the other hand, if CNMMG were to take over Noranda, it would be
China's largest-ever takeover of a foreign company. Regardless of how it plays out, the two companies still intend to work together on green field projects and exploration initiatives in
China.