London-listed mining conglomerate ACG has initiated a significant global expansion strategy by acquiring a Turkish copper mine for $290 million (£223 million). This acquisition marks the beginning of ACG’s ambitious plan to consolidate copper assets worldwide.
Acquisition Company Limited (ACG), a special purpose acquisition entity listed on the London Stock Exchange, announced today the acquisition of Turkey-based Polimetal. This purchase is the first step in their “global copper consolidation strategy.”
Polimetal, known for its mining rights, operates the Gediktepe mine, an open-pit mine located in the Bigadiç district of the Balıkesir province in Western Turkey. This acquisition provides ACG with a significant foothold in the copper mining industry.
Under the leadership of CEO Artem Volynets, formerly the chief executive of the Russian energy group EN+ and head of strategy at Russia’s largest aluminium producer Rusal, ACG is now preparing a major deals offensive and acquisition strategy across Africa and the Americas. Volynets highlighted the strategic importance of this acquisition, stating, “This transaction will inaugurate ACG Metals as a premier copper producer on the London Stock Exchange.”
The Gediktepe mine offers a robust foundation for ACG’s global copper consolidation efforts as the demand for copper continues to rise. Copper, a critical component in the production of electric vehicles and renewable energy technologies, has seen sustained demand growth, which ACG aims to capitalize on through further acquisitions.
This strategic move by ACG comes amid a wave of consolidation in the mining sector, as companies vie for valuable copper assets. The increasing demand for copper, driven by its essential role in green technologies, has prompted several mining giants to engage in aggressive mergers and acquisitions.
Earlier this year, Australian mining group BHP made an unsuccessful bid to acquire London-listed rival Anglo American. BHP’s demand for Anglo American to divest its steelmaking and coal operations from its lucrative copper mines in South America led to the failure of the takeover. This development has set the stage for further consolidation in the sector, as analysts anticipate more suitors entering the race for copper.
Nick Davis, senior partner at Memery Crystal, remarked on the potential for more deals in the sector following the failed takeover attempt. He stated, “The global need for copper and other battery metals will continue to drive M&A in the sector, especially while the copper price remains strong.”
ACG’s acquisition of Polimetal not only underscores the company’s commitment to becoming a leading player in the copper industry but also highlights the broader trend of consolidation as firms strive to secure their positions in the market. As ACG moves forward with its aggressive acquisition strategy, the global mining landscape is poised for significant changes.
