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Zinifex in $4bn merger
Andrew Trounson

December 12, 2006

LEAD and zinc major Zinifex is to merge its smelters with Belgium-based Umicore to create a new $4 billion business that would be headquartered in Belgium.
The deal announced today would leave Zinifex foucused on its mining assets, and well cashed up to pursue acquisitions as it looks to grow its mine production at a time of record high metal prices.
The move can also be expected to stoke speculation that Zinifex is a takeover target, since it becomes a more attractive proposition without its smelting assets.

Swiss-based Xstrata would be an obvious predator, as well as interest from Chinese or Brazilian entities.

There has also been speculation of Zinifex merging with Melbourne-based Oxiana.

Zinifex's smelting assets include smelters in Hobart, South Australia, the Netherlands and the US.
There are plans to eventually float the new merged company.