In October, 2000, Outokumpu Oyj, Finland’s largest public mining and metals company, entered an agreement to acquire 100 per cent of the shares in Norzink AS, a Norwegian zinc smelting and refining company, from Rio Tinto plc of Britain and Canada’s Boliden Ltd., which each own 50 per cent of the shares, in consideration for the purchase price of approximately US$190 million (C$295 million). The share purchase agreement is governed by English law.
Outokumpu Oyj will also pay $10 million to the sellers in the form of profit sharing during four years if the average price of zinc exceeds $1,185 per metric ton. With an annual production capacity of 150,000 tons of zinc metal, Norzink AS is one of the world’s most profitable and cost-efficient producers.
McCarthy Tétrault is acting for Outokumpu Oyj with respect to the purchase, along with in-house counsel Timo Sipi, Kalle Luoto and Tiina Leino of Outokumpu Oyj. The McCarthy Tétrault team includes Glen Ireland, Rob Brant, and Evgenia Ivanova from the London, England office, and Richard Miner and Doug Thomson from the Toronto office. Anders Eckhoff of the Norwegian firm of Bugge, Arentz-Hansen & Rasmussen has also provided advice to Outokumpu Oyj on the transaction.
Acting for Rio Tinto is in-house counsel Sandra Walker. Robert K. McDermott of McMillan Binch is acting for Boliden.