Boliden, Outokumpu form new company

Swedish miner Boliden and Finland's state-owned mining-metals group Outokumpu have formed a new company, called New Boliden, as a result of asset swaps and a cash payment by Boliden. Under the agreement, Boliden acquires Outokumpu's zinc and copper mining and smelting operations, while Outokumpu buys Boliden's fabrication and technology sales operations. Boliden will retain a 51% share of the merged company, to Outokumpu's 49%. Boliden also pays Outokumpu 373mn euros (US$455mn) and a subordinated debenture, currently estimated at a further 137mn euros, whose final value will be calculated in March. Boliden also receives 5 million shares in Outokumpo, registered on the Helsinki stock exchange, giving it a 2.8% stake in the Finnish company. Outokumpu declared that it has no intention of increasing its stake in Boliden, "and will not seek a majority position." Outokumpu specializes in stainless steel, fabricated copper products and copper and zinc metal production and related technology. Its largest shareholder is the Finnish trade & industry ministry with 38%. Boliden has two smelters in Sweden,and mine assets there and in Canada producing gold, copper, silver, zinc and lead. It also manufactures copper and brass products and sells metallurgical technology.