For an international metal and mining company, CRA was involved in a broad spectrum of due diligence issues associated with a prospective acquisition of another major international metal and mining company. This included a thorough analysis and quantification of all the synergies associated with the proposed merger. These synergies greatly exceeded the normal SG&A savings associated with most mergers. Intermediate product flows, operational combinations, shared infrastructure, elimination of redundant facilities, and product line rationalizations were quantified. CRA team members testified before the U.S. Department of Justice and the European Commission regarding market share and other product specific antitrust issues. All were accepted with the exception of one processing asset, for which the combined project teams found an acceptable potential buyer. The company was then given approval to resume its acquisition strategy.
Mining arbitrations involving offtake agreements: Industry and damages considerations
Under an offtake mining agreement, a buyer or offtaker commits to purchase a specified quantity or portion of a seller’s future mining output. Offtake mining...