You are here: Home » Companies » News
Business Standard

Grupo Mexico wins $83 mn in Sterlite case over Asarco

Bloomberg  |  New York 

Grupo Mexico won $82.8 million in a lawsuit against Indian copper producer Sterlite Industries, a unit of Vedanta Resources, over a failed deal to buy its Arizona-based Asarco out of bankruptcy, or less than four per cent of what it seeked.

US bankruptcy judge Richard Schmidt in Texas, awarded the damages to Asarco in a ruling yesterday. The amount was less than the $2.28 billion the copper miner wanted, following Sterlite’s decision in 2008 to walk away from a deal to buy the company. Sterlite, which blamed a drop in copper prices for failing to close the deal, harmed Asarco by delaying its exit from bankruptcy, Schmidt said. The damages were reduced because Grupo Mexico and Sterlite waged a 2009 bidding war for Asarco, which the former won. “Damages must be reduced to reflect a subsequent mitigating transaction,” Schmidt said.

Neither Sterlite nor Grupo Mexico spokesperson could be reached for comment.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, February 16 2012. 00:14 IST