Inco to acquire Falconbridge

Primary metals giant

is to acquire Falconbridge by way of a friendly take-over bid worth $2.43 billion.

The combined organisation, which will retain the Inco name, will be one of the world’s premier mining and metals companies in both nickel and copper, with an estimated nickel output of 735 million pounds this year, forecast to climb to some one billion pounds in 2009.

The combined company expects to immediately achieve significant synergies and cost savings and currently estimates that these will total $350 million per year by the end of 2007.

Upon completion of the deal, Inco will remain headquartered in Toronto, Canada.