Summary
Freeport-McMoRan Inc. (FCX) announced on February 15, 2016, a significant divestiture of a 13 percent ownership interest in its Morenci unincorporated joint venture to Sumitomo Metal Mining America Inc. for $1.0 billion in cash. This transaction is a strategic move aimed at strengthening the company's financial position, likely to address ongoing financial pressures. The sale is expected to close in mid-2016, subject to customary closing conditions, including regulatory approvals.
Key Highlights
- 1FCX entered into a definitive agreement to sell a 13% stake in the Morenci joint venture for $1 billion cash.
- 2The buyer is Sumitomo Metal Mining America Inc.
- 3The transaction is expected to close in mid-2016.
- 4Completion is subject to standard closing conditions, including antitrust and foreign competition law approvals.
- 5The sale is a material definitive agreement and signals a strategic effort to raise capital.
- 6No shareholder approval is required for this transaction.
- 7The Purchase Agreement includes customary representations, warranties, and indemnification provisions.