Anglo-Swiss miner Xstrata has offered A$3.1bn for Australian mining and exploration company Jubilee in a move to create "a world-class nickel business".
On a statement on its website Jubilee says it has agreed to sell all Jubilee shares to Xstrata for A$23.00 per share.
Xstrata Nickel says it will establish a regional base for its activities with headquarters in Perth.
"Our intention is for this regional base to be developed around and managed by Jubilee's existing team, which has an exceptional track record of creating and delivering shareholder value through the operation, exploration and development of Jubilee's mining projects," says Xstrata Nickel CEO Ian Pearce.
Perth-based Jubilee works primarily on high-grade nickel sulphides and its largest project is Cosmos Nickel, located approximately 40m north of Leinster in the North Eastern Goldfields of Western Australia.
Xstrata has received informal clearance from the Australian Competition and Consumer Commission for its offer.
By Ozge Ibrahim
