CVRD Offers $15.3 Billion For Inco

Brazilian Companhia Vale do Rio Doce (CVRD), the world’s largest iron-ore producer, has offered to buy Canadian nickel producer Inco for $15.3 billion in cash. The acquisition would make CVRD the world’s largest nickel miner by 2010, according to projections, and would turn it into one of the leading global mining companies. However, CVRD is facing competition for Inco from North American companies Phelps Dodge and Teck Cominco. The acquisition of Inco will be financed by loans from Credit Suisse, UBS, ABN AMRO and Banco Santander Central Hispano.