Hudbay Minerals Inc. (HBM.TO,HBM), a Toronto-based Canadian mining company, on Monday entered into a definitive agreement to acquire all outstanding shares of Arizona Sonoran Copper Company Inc. (ASCUF,ASCU.TO) not already owned by Hudbay in an all-share transaction valued at about $1.48 billion.
The transaction is expected to close in the second quarter of 2026.
Under the terms, Arizona Sonoran shareholders will receive 0.242 of a Hudbay common share for each Arizona share held.
The offer implies a value of C$9.35 per share based on Hudbay's February 27 closing price on the Toronto Stock Exchange.
The implied price represents a 30% premium to Arizona's closing price and a 36% premium to its 20-day volume-weighted average price.
Hudbay currently owns approximately 9.99% of Arizona.
Following completion, existing Hudbay and Arizona shareholders are expected to own approximately 89% and 11% of the combined company, respectively.
The transaction will result in Hudbay owning 100% of the Cactus copper project in Arizona and is expected to strengthen its U.S. growth pipeline alongside its Copper World project.
On Friday, Arizona closed trading 3.74% higher at C$7.22 on the Toronto Stock Exchange.
Hudbay Minerals closed trading 0.78% higher at C$38.65 on the Toronto Stock Exchange.
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