Hudbay Minerals has signed an agreement to acquire Arizona Sonoran Copper Company (ASCU) in a $1.48 billion (C$2.02 billion) 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 increase copper production capabilities.

Hudbay will acquire all of the 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 to ASCU’s closing price and a 36% premium to the 20-day volume-weighted average prices of both companies.

Hudbay President and CEO Peter Kukielski said: “The acquisition of ASCU is a very compelling transaction that further enhances Hudbay’s copper growth platform in the US. Cactus is a large-scale, high-quality copper development asset in a mining jurisdiction we know well.

“Together with the advancement of Copper World, this transaction creates one of the most important copper districts in North America and strengthens Hudbay’s position as a leading copper growth company, while preserving financial flexibility and delivering long-term shareholder value.”

Hudbay plans to increase production from about 125,000 tonnes per annum (tpa) to more than 250,000 tpa by 2030, with potential growth to over 350,000 tpa with the addition of Cactus.

The operation is designed to benefit the shareholders of both companies.

They will also have exposure to Hudbay’s diverse range of long-lived assets, generating substantial free cash flow.

Upon completion of the transaction, current Hudbay shareholders will own approximately 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 higher bid, along with a termination fee under specific conditions.

Completion requires court approval in British Columbia (BC), Canada, and shareholder approval at a meeting scheduled for May 2026.

Regulatory approvals in both the United States and Canada are also required before the transaction can be completed, which is expected in the second quarter of 2026.

Last month, Hudbay you have received the essential permission amendments for the expansion of its New Ingerbelle project at the Copper Mountain mine in BC.

“Hudbay Minerals agrees to acquire Arizona Sonoran for $1.48 billion” was originally created and published by Mining Technologya trademark owned by GlobalData.

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