Business Case Studies, Mergers, Acquisitions and Takeovers Case Study, Phelps Dodge’s U$40 bn Deal for INCO and Falconbridge,Blockbuster Mining Takeover Deal

print page
Tell A Friend
Bookmark
 

Case Categories

Mergers, Acquisitions and Takeovers Case Study

IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
Case Title:

Phelps Dodge’s U$40 bn Deal for INCO and Falconbridge: Blockbuster Mining Takeover Deal

Publication Year : 2006

Authors: Abhijit Sinha

Industry: Minerals, Metals and Mining

Region:US

Case Code: MAA0113K

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study
OR





Abstract:
On June 2006, US based copper miner Phelps Dodge Corporation announced its plan to acquire Canada’s INCO Ltd and Falconbridge Ltd for US$ 40 bn. The deal would be the biggest corporate takeover in the Canadian corporate history. The new entity would be named Phelps Dodge INCO Corporation. Analysts predicted that the new company would be globally the largest nickel producer, world’s largest publicly traded copper producer and a leading producer of molybdenum and cobalt. The corporate office and the copper division of the new company would be headquartered in Phoenix (Arizona, US), while the new company’s nickel division, INCO Nickel, would be headquartered in Toronto (Canada). However, after the announcement of the mega-merger, both the analysts and global mining industry were skeptical about the success of the deal since the industry had experience of similar big deal that often caused disappointment and crushed small time investors. Analysts opined that it was certainly possible that the merger of INCO Ltd and Falconbridge Ltd. with Phelps Dodge Corporation became a ‘marriage made in heaven’ but a portfolio strategy study of eleven largest transactions proved an unhappy history of transactions that could be better termed as ‘marriage made in hell. The case deals in detail about the potential synergy and strategic advantage behind the deal, how the companies plan to leverage the deal and how this mega deal could overcome the problems associated with big deals.

Pedagogical Objectives:

  • To understand the global mining industry
  • To discuss about the acquisition
  • To analyse the potential synergies of the merger
  • To debate on whether the merger would be successful or not.

Keywords : Mergers,Acquisitions,Alliances Case Study;Phelps Dodge Corporation; Inco Limited; Falconbridge Limited; Phelps Dodge Inco Corporation; BHP Billiton; Rio Tinto; Anglo American; Companhia Vale do Rio Doce (CVRD); Global mining industry; Sudbury Basin; Metal bulletin; Teck Cominco; Roger Angnelli; Alcan Aluminium Ltd; Noranda Inc

Contents : 
Phelps Dodge Corporation
Falconbridge Limited
Potential Synergies: Making Of A Mineral Behemoth
Metals Mettle: Yet To Be Proved

Recently Bought Case Studies

    Recently Bought Case Studies
advertisement

    Executive Interviews

  • George G BrenkertGeorge G Brenkert

    Professor of Business Ethics at the McDonough School of Business of Georgetown University
    Speaks on Building Ethical Organizations
  • Dr. Bala V BalachandranDr. Bala V Balachandran

    Dr. Bala V Balachandran, Founder and Honorary Dean of Great Lakes Inistitute of Management
    Speaks on Government and Business
  • Eileen FischerEileen Fischer

    Eileen Fischer, is a Professor of Marketing and the Anne and Max Tanenbaum Chair in Entrepreneurship and Family Enterprise.
    Speaks on Steve Jobs
  • View All Executive Interviews»






Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501 504, Andhra Pradesh, INDIA.
Mob: +91- 9640901313, Phone: +91 - 08417 - 236672, Fax : + 91 - 08417 - 236674
E-mail: casehelpdesk@ibsindia.org

©2003-2010 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap