Two Canadian mining companies, Inco and Falconbridge, have announced a USD 12.5 billion friendly merger plan to create one of the world’s biggest metals producers. The deal makes a foreign takeover of either Canadian company less likely in an increasingly competitive and consolidating industry. Inco has agreed to pay nearly USD 11 billion in cash and stock for Falconbridge Ltd. The merged company, which will employ about 25,000 people globally, including 14,000 from Falconbridge, and will become the world’s biggest nickel producer and its fifth-largest copper producer. The combined company would have nickel production greater than Norilsk Nickel of Russia, currently the world leader, as well as significant copper, zinc and aluminium production brought by Falconbridge.
