Hudbay Minerals has signed an agreement to acquire Arizona Sonoran Copper Company (ASCU) in a $1.48bn (C$2.02bn) transaction, establishing the third-largest copper district in North America.
The integration of Hudbay’s Copper World deposits with ASCU’s Cactus project is expected to significantly boost copper production capabilities.
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Hudbay will acquire all outstanding shares of ASCU that it does not already own, offering 0.242 of a Hudbay share per Arizona Sonoran share.
This offer represents a 30% premium over ASCU’s closing price, and a 36% premium when considering the 20-day volume-weighted average prices of both companies.
Hudbay president and CEO Peter Kukielski said: “The acquisition of ASCU is a highly compelling transaction that further enhances Hudbay’s copper growth platform in the US. Cactus is a high-quality, large‑scale copper development asset in a mining jurisdiction that we know well.
“Together with the advancement of Copper World, this transaction creates one of the most significant copper districts in North America and reinforces Hudbay’s position as a premier copper growth company, while preserving financial flexibility and delivering long‑term value for shareholders.”
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By GlobalDataHudbay plans to increase output from around 125,000 tonnes per annum (tpa) to more than 250,000tpa by 2030, with potential growth exceeding 350,000tpa with the addition of Cactus.
The transaction is designed to benefit shareholders of both companies.
They will also gain exposure to Hudbay’s diverse range of long-life assets, generating substantial free cash flow.
After the transaction is finalised, current Hudbay shareholders will hold around 89% of Hudbay, while ASCU shareholders will own approximately 11%.
The acquisition agreement includes standard provisions such as a non-solicitation clause for ASCU and a right for Hudbay to match any superior offers, alongside a termination fee under specific conditions.
Finalisation requires court approval in British Columbia (BC), Canada, and shareholder approval at a meeting scheduled for May 2026.
Regulatory approvals in both the US and Canada are also necessary before the transaction is completed, which is expected in the second quarter of 2026.
Last month, Hudbay received essential permit amendments for the expansion of its New Ingerbelle project at the Copper Mountain mine in BC.
