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Sterlite Industries, the country's largest copper producer and a part of Anil Agarwal-owned Vedanta Resources Plc, is close to signing a contract to buy Asarco LLC, potentially ending the US miner's four-year-old bankruptcy. The companies have agreed on a dollar value for the sale of Asarco's assets and other major points of a proposed contract. The contract may be signed within two weeks.

Though a Sterlite official said the company is still in takeover talks with the beleaguered miner, he refused to give details. The official refused to comment on the price at which the Indian firm is negotiating with Asarco.

Sterlite had withdrawn a $2.6 billion bid for Asarco in October saying changes in the copper market no longer justified the price. It said it would make a revised offer. In January, Asarco's parent Grupo Mexico, which is also trying to get back the control of the company, said that, given the current market situation, it would not offer more than $200 million for the US company.

Given the current price of copper, Sterlite must not pay more than $900 million for the acquisition. Anything above a billion dollars would have a negative impact on Sterlite. The copper prices are down nearly 70% from its peak. Spot copper prices on the London Metals Exchange have dropped from a high of $8,900 per tonne in February last year to $3,300 per tonne on Thursday.

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Peers
Company Name CMP
Hindalco 1037.30
Vedanta 271.60
Hindustan Zinc 595.50
Jain Resource Recycl 458.85
Gravita India 1629.05
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