Switzerland-based miner Xstrata plc's subsidiary Xstrata Canada Corporation have terminated its acquisition offer for Canada-based Noranda Income Fund (the Fund), which owns the CEZinc processing facility and ancillary assets in Salaberry-de-Valleyfield, Quebec, stating that the parties were unlikely to agree to terms for an acquisition.
Accordingly Xstrata cancelled the non-binding letter of intent dated July 28, 2010 with respect to a potential acquisition of the Fund by Xstrata.
As SteelOrbis reported, the potential transaction contemplated the acquisition of all of the outstanding priority units of the Fund for cash consideration of $3.40 per priority unit, which represented a premium of 33 percent over the July 15 closing price of the priority units on the Toronto Stock Exchange.
The CEZinc processing facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America. It produces refined zinc metal and various by-products from zinc concentrates purchased from mining operations.