Sullivan & Cromwell has advised Sumitomo Metal Mining (SMM) in its $1 billion purchase of an additional 13 percent stake in its Morenci unincorporated joint venture with U.S. natural resources firm Freeport-McMoRan, which looked to Davis Polk &Wardwell for legal advice.
The transaction, which is expected to close in mid-2016, will take Sumitomo Metal's share in Morenci to 25 percent from 12 percent, while Sumitomo Corp holds 3 percent, leaving Freeport with the rest.
Partner and energy specialist Sergio J. Galvis oversaw the acquisition for S&C. The New York-based Davis Polk team was led by Marc O. Williams, with fellow partners Frank J. Azzopardi and Joel M. Cohen handling IP and technology issues as well as antitrust and competition advice, respectively.
Freeport, which is based in Phoenix, Arizona, plans to use funds from the deal to speed up its debt-reduction efforts to restore its balance sheet, explained CEO Richard C. Adkerson in a statement.
Meanwhile, SMM snapped up more interest in the Morenci mine – the biggest copper producer in North America – as it aims to boost its annual copper production interest to 300,000 metric tons, the Tokyo-headquartered company said in a separate statement.
