Hudbay Minerals is acquiring Arizona Sonoran Copper in an all-share transaction that values the latter at approximately $1.48 billion.
Under the definitive arrangement agreement, each Arizona share will be exchanged for 0.242 of a Hudbay common share. Based on Hudbay’s last close, the implied consideration is $9.35 per Arizona share, a 30% premium.
Hudbay already owns 20.8 million Arizona shares, equal to 9.99% of Arizona’s outstanding basic shares. Net of that existing stake, the enterprise value to Hudbay is approximately $1.28 billion. After closing, existing Hudbay shareholders are expected to own about 89% of the combined company, while former Arizona shareholders will own about 11%.
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Hudbay said combining Cactus with its Copper World project creates the third largest copper district in North America and could form the second largest district of copper cathode production in the US. Copper World is expected to produce 92,000 tonnes of copper annually by 2030, with Cactus adding a further 103,000 tonnes after Copper World, implying a combined 195,000 tonnes of expected annual copper production.
Both boards unanimously approved the arrangement agreement. Arizona’s board, after receiving the unanimous recommendation of its independent directors, also unanimously recommended shareholders vote in favor.
Arizona directors and senior officers holding about 1.1% of voting securities have signed voting support agreements in favor of the transaction. The deal still requires approval thresholds of 66â…”% of Arizona shareholder votes cast, 66â…”% of votes cast by Arizona shareholders and securityholders voting together as one class, and a simple majority of disinterested shareholder votes.
The special meeting is expected in May 2026, and closing is targeted for the second quarter of 2026, subject to customary regulatory approvals.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
