Deal Would Create No. 2 Copper Producer

Cyprus Amax Minerals Co. and Asarco Inc. said they agreed to merge in a $2.2-billion deal that would create the world’s largest publicly traded copper producer and the world’s second-largest copper company, behind Chile’s government-owned Codelco. The combined company, to be known as Asarco Cyprus Inc., would have about $8 billion in assets and 15,000 employees, and produce about 2 billion pounds of copper a year. The companies said no cuts in copper production are planned, though some administrative jobs will be lost. Cyprus Amax holders would get 0.765 share in Asarco Cyprus for each of their shares and would own 63.5% of the new company. Asarco holders would get one share of Asarco Cyprus for each Asarco share. The move comes as copper producers struggle with prices that have only recently begun to rebound from 12-year lows reached at the end of May on soaring stockpiles. The companies expect to cut administrative costs by $150 million and add to earnings next year. On the New York Stock Exchange, shares of Englewood, Colo.-based Cyprus Amax rose 63 cents to close at $14.56, and shares of New York-based Asarco rose 25 cents to close at $19.25. The deal was announced after the close of trading on U.S. markets.