Minmetals may keep buying

Minmetals may use its $2.6 billion takeover of OZ Minerals as a springboard to buy further Australian assets, OZ CEO Andrew Michelmore told the ABC.

Minmetals may use its $2.6 billion takeover of OZ Minerals as a springboard to buy further Australian assets, OZ CEO Andrew Michelmore told the ABC.

“I think they are going to see this as a platform to really grow their business,” he said.

“They want this as their offshore vehicle to grow their base metals business.”

The takeover deal awaits approval from the Foreign Investment Review Board, as well as being contingent on a number of banks agreeing to extend OZ’s $1.2 billion debt facilities until the scheme of arrangement can be completed.

Michelmore said that he could not guarantee the banks would extend the loans.

“Logic says this is a fantastic outcome for them it solves their problem,” he said.

“I think some of them, particularly the offshore banks, are required to get those funds home as soon as possible; they have been told, pull it back, don’t care what it means.

“I think that’s where the difficulty will come.”

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