In an announcement last Friday, Freeport-McMoRan Copper & Gold Inc said that it had completed its purchase of Plains Exploration and Production, the American oil and gas producer. The cost of the purchase was at US$6.2 billion as it sought to build a global natural resources conglomerate.
Aside from Plains Exploration, the miner is also purchasing McMoRan Exploration Co for the price of US$2.1 billion. The purchase of the energy producer based in the Gulf of Mexico is projected to be completed by next week.
Both acquisitions were initially met with adverse reactions from its investors when first announced last December. Many of them saw the controversial purchases as too expensive for the abilities of the copper and gold miner based out of Phoeniz, AZ.
Earlier this month, Freeport had improved the acquisition terms for Plains Exploration to entice shareholders to accept the deal. The deal involves payment of about US$3.3 billion in cash and 91 million in company shares of stock valued at US$2.9 billion based on share prices at close of market trading. Also included in the deal would be the assumption of US$9.7 billion of debt as well as a US$3.00 dividend for each share of stock.
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