Miners could be consolidators of metals industry, says steel body chief

May 21, 2007

Mining companies flush with cash from a commodities boom could emerge as the driving force in consolidation of the metals industry — not the metals companies themselves — Ian Christmas, secretary general of the IISI steel industry association, told Reuters journalists in London. “I’m not surprised that CVRD bought Inco last year. They had the cash. I wouldn’t be at all surprised to find the mining companies as the successful purchasers of Alcoa,” he said. Alcoa has made a $28 billion hostile bid for Canadian rival Alcan in what could be a defensive move to avoid being bought itself, while Brazilian mining group CVRD bought Canadian nickel miner Inco last year in a deal worth a total of $17.6 billion.

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