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GRUPOMEXICO
Av. Baja California #200, Mexico City 06760
FOR IMMEDIATE RELEASE
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CONTACTS
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GRUPO MEXICO, S.A. de C.V.
Xxxxxx Xxxxxxxxx
000-000-000-0000
Xxxxxxx Xxxxxxxx
000-000-000-0000
XXXXXXXXX XxxXXXXXX XXXXX
Xxxxx Xxxxxxx
000-000-0000
GRUPO MEXICO AND ASARCO SIGN MERGER AGREEMENT
COMBINATION WILL CREATE LEADING INTERNATIONAL MINING COMPANY
MEXICO CITY, October 25, 1999 -- Grupo Mexico, S.A. de C.V. today announced
that it has signed a definitive merger agreement with ASARCO Incorporated
(NYSE:AR) under which Grupo Mexico will acquire ASARCO for $29.75 in cash net
per share of ASARCO common stock. Including the assumption of $1.02 billion
ASARCO debt, the transaction has a total value of approximately $2.25 billion.
Xxxxxx Xxxxxx, chairman and chief executive officer of Grupo Mexico, said, "A
combination of Grupo Mexico and ASARCO will create a world-class
international mining company with high-quality assets and an enhanced
competitive position. Our operations are extremely complementary, and we look
forward to working with ASARCO to integrate them seamlessly."
Grupo Mexico also announced today that, in addition to increasing the offer
price to $29.75 per share, it is extending the expiration date on its
outstanding tender offer until Tuesday, November 9, 1999, at 12:00 midnight
New York City
- more -
time. The tender offer previously had been scheduled to expire on Monday,
October 25, 1999, at 12:00 midnight New York City time. As of 5:00 P.M. New
York City time on October 22, 1999, 2,684,820 shares of Common Stock had been
tendered to Purchaser under the terms of the Offer.
Grupo Mexico will promptly be filing with the Securities and Exchange
Commission and distributing to ASARCO shareholders a supplement to its Offer
to Purchase reflecting the increase in the tender offer price to $29.75 and
setting forth the material terms of the transaction.
Chase Securities Inc. served as financial advisor to Grupo Mexico and is
arranging the financing for the transaction. Brown & Wood LLP and
Xxxxxxxxxxx y Xxxxx served as legal advisors to Grupo Mexico.
Grupo Mexico is a diversified mining company that ranks among the world's
largest and lowest-cost copper, zinc and silver producers. The Company's
operations include mining, smelting and refining. Grupo Mexico also owns 74%
and operates in partnership with Union Pacific (26%) the largest and most
profitable railroad in Mexico.
NOTE: Statements in this press release include "forward-looking statements"
that express expectations of future events or results. All statements based
on future expectations rather than on historical facts are forward-looking
statements that involve a number of risks and uncertainties, and the company
cannot give assurance that such statements will prove to be correct.
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