Freeport-McMoRan Copper & Gold (FCX) and Phelps Dodge Corporation have announced that the shareholders of both companies approved FCX’s acquisition of Phelps Dodge at special meetings yesterday. At each meeting, approximately 98% of the votes cast supported the transaction. The transaction is expected to close on March 19, 2007.
Richard C. Adkerson, FCX’s President and Chief Executive Officer, said, “We are pleased with the approval from shareholders which will allow us to complete the acquisition of Phelps Dodge. This is an exciting time for our company as we transform FCX into the world’s largest publicly traded copper producer.”
Upon the closing of the merger, FCX will operate a geographically diverse portfolio of long-lived reserves of copper, gold and molybdenum. The Grasberg mine, the world’s largest copper and gold mine in terms of reserves, will be the key asset of the combined company. FCX will operate significant mining operations in North and South America and will proceed with the initial development of the world-class Tenke Fungurume project in the Democratic Republic of Congo.
FCX explores for, develops, mines and processes ore containing copper, gold and silver in Indonesia, and smelts and refines copper concentrates in Spain and Indonesia. Phelps Dodge is one of the world’s leading producers of copper and molybdenum and is the largest producer of molybdenum-based chemicals and continuous-cast copper rod.