Brazilian mining group Companhia Vale do Rio Doce is poised to become the latest emerging market company to buy a rival in the developed world after becoming the favourite to acquire Canadian nickel producer Inco. The deal could make CVRD the world’s biggest nickel producer.
CVRD emerged as the most likely buyer of Inco after a rival suitor, Canada’s Teck Cominco, failed to complete a deal. The Vancouver-based firm pulled out after it was asked to sweeten its C$5.3 billion ($4.75 billion) share bid. CVRD, on the other hand, is making a more enticing cash-only offer of C$86 a share, equal to C$19.4 billion. A third company, Phelps Dodge of the US, also has an offer on the table. Its bid is valued at C$89 a share but the package includes shares as well as cash, making it less attractive. A conclusion to the drama is expected by the end of the month.