Chinese Company Makes $6.5 Billion Unsolicited Bid for Equinox Minerals

Minmetals Resources, a unit of a Chinese state-owned mining company, said on Sunday that it had made an unsolicited $6.5 billion bid for Equinox Minerals, a Canadian copper mining company.

The move is widely seen as an effort by the Chinese to purchase raw materials mines to fuel the strong economic growth it has consistently maintained.

According to the New York Times Dealbook, "That strategy has been controversial at times, particularly in Canada. In 2004, China Minmetals tried to acquire Noranda, Canada's largest mining company at the time, but withdrew the bid after it became a contentious political issue in Canada."

Minmetals Resources CEO Andrew Michelmore noted that the company is financing the deal with cash from its parent and other Chinese companies.

Martin McFarlane, the head of investor relations for Minmetals Resources said the deal was expected to pass through Canadian regulatory channels quickly.

“We're not expecting any particular issues,” he said, noting that the company had no local mines and few Canadian employees.

The bid for Equinox came in at C$7 a share, compared to a Friday closing price of C$5.71.