Mitsubishi Takes Stake in Chile Miner

MC Inversiones, a Chile-based investment vehicle of Mitsubishi, is taking a 25% stake in Cia. Minera del Pacifico (CMP), a mining subsidiary of steel company CAP for $924m. Mitsubishi will merge its Cia. Minera Huasco with CMP, gaining a 15.9% stake in CMP. It will then fund a $400m capital increase in CMP, elevating its stake in the mining company to 25%. The seller values the total stake purchased at $924m. CAP says it will hold a shareholder meeting March 10 to approve the deal. CAP also says it has hired Celfin Capital to analyze the deal and that JPMorgan conducted a fairness opinion on the transaction. Japanese firms aim to secure a long-term and stable supply of resources, according to the Japan Bank for International Cooperation, which last month signed a $245m loan for Chile’s Minera Los Pelambres to finance expansion. Pelambres is 60% owned by Antofagasta alongside Nippon Mining & Metals Co, Mitsubishi, Marubeni and Mitsui.